The latest survey of construction buyers revealed a 17-year high in recruitment rates as the market continued to rise.

KPMG’s Head of Infrastructure, Construction and Building Richard Threlfall said:  “The sharp pick up in employment levels is not only good news for the industry, it is good news for UK PLC and indicative of the strengthening of the economy overall and that confidence is back in the market.”

But he warned the pick-up was still ‘sweet and sour’ news for the industry’s biggest players.

Threlfall said: “Surge in output, especially in residential and commercial, is putting much needed volume into the industry, but Tier 1 margins remain under sustained pressure from rising input prices and subcontractor costs, and cash positions in many Tier 1’s remain acute.

“KPMG continues to predict at least another 12 – 18 months before the pressures in the industry even out and Tier 1 management can start to breath easily again.”