Construction activity has risen for a sixth straight quarter in the UK, new research shows, but many contractors are still finding it tough to recruit skilled carpenters and bricklayers.

According to the Construction Products Association (CPA), the industry saw another rise in activity over the third quarter of this year.

Higher outputs were reported by companies of all sizes, its Construction Trade Survey revealed, from the biggest employers down to the smallest firms.

Compared to the same three-month period of 2013, a balance of 60 per cent of the building contractors queried said their output levels improved.

A breakdown of the data shows that, on balance, 35 per cent of firms benefited from a higher private housing output.

Elsewhere, a balance of 43 per cent said their private commercial output increased in year-on-year terms, while 41 per cent said the same of their private industrial output.

However, the findings of the report were not entirely positive, with skills shortages posing challenges in some key areas.

For instance, 41 per cent of the contractors questioned said they still struggled to recruit bricklayers between July and September. Some 39 per cent also found it tough to track down talented carpenters.

Dr Noble Francis, the CPA’s economics director, said the study marks the first time in six and a half years that activity levels have grown over six straight quarters.

He said weaker growth in the private housing industry was offset by improvements in other sub-sectors.

Looking to the future, Dr Francis added: “Construction firms also reported rises in forward-looking indicators such as orders and enquiries which clearly indicate that activity will rise throughout 2015.”

Among its other key findings, the CPA said that higher labour costs had an impact on 68 per cent of building firms over the third quarter.

In comparison with the second quarter of 2014, almost three quarters (74 per cent) also said that they endured higher material costs.

Stephen Ratcliffe, director UKCG, said: “Labour cost rises do signal the need for the industry to attract new recruits and emphasise the importance of our campaign ‘Born to Build’, which is trying to entice young people to consider a career in construction.”

Richard Beresford, chief executive of the National Federation of Builders, added: “The good news of across the board rises in reported output makes it tempting for us to take our eye off some of the industry’s structural issues.

“With more work around, we have a little breathing space, an opportunity to address access to finance, tender costs, skills and security of materials’ supply to ensure a more sustainable recovery.”