The buoyant economy in the Republic is helping to create jobs and boost profits in the Northern Ireland construction industry, according to the latest report from the Northern Ireland Construction Employers' Federation.

The federation's managing director, Mr Tony Doran, said inquiries for new work continued to show a steady improvement, with an increase in the work being carried out in the South.

"Undoubtedly the growth of the economy in the Republic has helped our members to pick up volume and turnover," Mr Doran said.

"However, profits have continued to be hit by the continued strength of sterling against the Irish pound."

He said the long-term future of the industry could be affected by planning failures, and he called for greater efficiency in the planning service, and for the early release of land for construction projects.

The report reveals the industry is employing more than 28,000 people, more than at any time since 1990.