The volume of output in the building and construction sector increased by 4.2% in the first quarter of 2016, when compared with previous three months.

Annually, the volume output increase was 13.6%.

Latest CSO figures also indicate an increase of 17% in the volume of residential building work, and 1.7% for non-residential building work.

Year on year, the rise in the volume of output reflects increases of 34.4% and 4.1% respectively in residential and non-residential building work.

Meanwhile, the value of production for all building and construction increased by 5.4% during the quarter, and was 11.9% higher on an annual basis.

Civil engineering work volume has decreased by 3.2% in the last three months, and is 0.2% lower on an annual basis.  

Commenting on the CSO figures, David McNamara from Davy said: "The recovery is being largely driven by residential, but non-residential activity is now growing at a decent pace.

"We expect this trend to persist in the coming quarters as house-building picks up."