Employee numbers in the UK services sector rose for the first time since April 2008, while construction employers continued to cut headcount, according to the March’s CIPS/Markit Business Activity Index.

The index registered a reading of 56.5, down from 58.4 in February but confidence in the sector is at its highest for six months and there was also a rise in overall business activity during March.

In the construction sector, there was a further decline in employment with job cuts largely attributed to redundancy programmes, with staffing levels showing no signs of stabilisation.

However, UK construction activity increased during March for the first time since February 2008, with the seasonally adjusted CIPS/Markit Construction Purchasing Managers’ Index (PMI) posting a reading 53.1, up from the previous month’s reading of 48.5. Growth was principally down to a rise in new orders, which supported a 15th successive month of positive sentiment regarding future business activity.