According to the report uncertainty surrounding the general election in May will weigh heavily on confidence when it comes to construction, as there are unanswered questioned on how a potentially new government plans to tackle the deficit.
But the report said that the housebuilding sector was still the strongest performing sub-category of the UK’s construction sector, as according to Markit housebuilders enjoyed their best year since 1997 in 2014.
Tim Moore, senior economist at Markit, said: "A sharp recovery in housebuilding, as well as resurgent demand for commercial development projects, continued to boost staff recruitment and sub-contractor pay rates across the construction sector in December.
"While new business growth moderated to its lowest for a year-and-a-half in December, UK construction firms are still highly upbeat about their prospects for output growth in 2015."
Four times as many construction companies (52%) anticipate an upturn in output over the year ahead compared to those that expect a reduction (13%), although the balance of firms expecting growth was still the lowest recorded since August 2013.
