The Ulster Bank Construction Purchasing Managers Index (PMI) for December shows that Irish construction continued its recovery in the final month of 2014. The report also found that employers took on employees at a rapid rate heading into the new year.

The PMI reached 63.1, falling slightly from 63.5 in November, but well above the 50.0 mark which indicates expansion over the previous month. The average monthly reading in 2014 was the highest since the index began.

The report indicates that the strong performance of the industry - and a positive outlook heading into 2015 - led to many firms taking on new employees in December.

The latest figures show that new orders continued to grow in December - but at a slower rate than the previous four months. The PMI also reports that civil engineering activity grew at its fastest pace in eight years.

Ulster Bank's chief economist for the Republic of Ireland, Simon Barry, commented on the figures: “Overall, 2014 marked an important year for the Irish construction sector, with the PMI results through the year pointing to the establishment of a solid, broadly-based recovery."

He added: "While this recovery needs to be seen in the context of the huge downturn which hit the sector over 2006-13, the encouraging trends in place at the end of the year indicate that the sector will likely enjoy further expansion in 2015.”