Government spending on roads and other infrastructure has boosted the construction industry, with civil engineering remaining the strongest form of activity, the latest Ulster Bank indicator shows.

The Ulster Bank purchasing managers index shows construction activity growing for the 32nd successive month, with civil engineering the largest segment of the industry.

Civil engineering generally involves roads, bridges, water supply, sewers, flood control and traffic. Pat McArdle, chief economist at Ulster Bank said: "This is uncommon - you have to go back to 2001 to find a previous example of civil leading the posse.

"Government capital spending is clearly a major explanatory factor".

Total activity in the construction sector was up to 57.2 from 56.6 in the previous month. Firms linked growth of activity to increased new order volumes and business expansion into different areas.

Mr McArdle said the latest results presented a mixed picture, for example residential was still growing, but commercial was still of some concern. "Though commercial recovered somewhat, it remains well below earlier index levels and unusually for it, is the laggard of three sub-sectors".

Meanwhile, yesterday there were indications in a separate report that the recent abolition of the Groceries Order has had little effect on food inflation.

Recent trends in consumer price inflation in Ireland have been decidedly upwards, said Davy Research.

"The pick-up in the overall inflation rate is also partially a reflection of an acceleration in inflation in the food sector and the services sector in general," said economists Robbie Kelleher and Rossa White.