Activity in the construction industry is still experiencing a decline, although some areas of the housing market are improving.

This is according to a new report from the Royal Institution of Chartered Surveyors (Rics), which showed 45 per cent of surveyors reporting a fall in workloads during the first quarter of this year.

"Despite some sub-sectors showing slightly more positive signs, construction output is likely to post a double digit drop over the course of 2009 with a further loss of employment and skills in the industry," predicted Rics chief economist Simon Rubinsohn.

The figures revealed that 38 per cent more surveyors are predicting a fall in business as opposed to a rise, while 46 per cent are anticipating a drop in employment levels.

Begbies Traynor’s Red Flag Alert report from April showed that property services, construction and financial services had been the hardest hit sectors when compared with the first quarter of 2008.

All three sectors reported a year-on-year increase of more than 100 per cent in the number of companies experiencing critical problems, the report also found.