The report says construction is driving the economy

It said the economy continues to expand at a robust rate, although growth has slowed a little in the past month.

The survey predicts a further increase in employment, particularly in the building trade, as firms win new business.

Ulster Bank chief economist Pat McArdle said there were backlogs of work.

"Global rates of increase in private sector activity eased in March and Northern Ireland was no exception," he said.

"However, NI continues to expand at a robust rate and in line with the UK. Growth in employment remained strong with only three other regions ahead of it in March.

"Although below recent exceptional growth rates, the March employment PMI reading was still well ahead of its long-term average.

"Interestingly, backlogs of work are still growing, whereas they are contracting in the UK, an indication that employment growth is likely to remain strong, at least in construction where the bulk of the backlogs exist."

He said construction is more than ever the driving force with retail and manufacturing easing and services relatively strong.

"Input cost inflation remains a problem but the gap between costs and prices charged has levelled off in recent months, easing the squeeze on profit margins," he added.

The report forms part of a series of regional surveys published by The Royal Bank of Scotland Group and NTC Economics, and is derived from the Purchasing Managers' Index surveys produced by NTC for the Chartered Institute of Purchasing and Supply.