The construction industry is shrugging off fears of a recession as house builders cope with demand for new homes.

Output and employment were expected to increase over the next year and firms believed their profit margins would also rise, said the Royal Institution of Chartered Surveyors.

Workloads grew strongest in the North, rose at a slower pace in other areas, particularly Scotland, and continued to fall in Northern Ireland.

Skill shortages have eased slightly, although the demand for bricklayers increased over the past year.