Construction project starts were up 9% for the three months to December 2012, when compared with the previous year.

Figures from construction market analysts Glenigan shows the hotels and leisure sector recorded the strongest performance from any sector in the period.

Starts increased by over 70% in that period, when compared with 2011. This was despite significant declines over the summer.

New social housing work also increased during the final quarter, showing a rise of 48% on 2011.

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Glenigan revealed private housing starts were up by 20% on 2011's final quarter.

Glenigan economist, Andrew Whiffin, said: "The run-up to the new year has been awash with activity in the hotels and leisure sector, we have not only seen a number of large high profile projects begin in recent months but the flow of repair and maintenance has also boosted underlying work in the final months of the year. A number of projects such as those related to the construction of the new Centre Parcs at Woburn have in the past few months helped push starts for the sector into growth for the full year.

"Retail sector projects have been dominated by the supermarket chains in 2012; their expansion programmes drove growth over the first half of the year and it is the throttling back of these programmes that has led to a slowdown as we head into 2013."

(IT/GK)