The Purchasing Managers' Index (PMI) by the Chartered Institute of Purchasing and Supply in conjunction with Markit revealed that there was a rise in tender wins and new orders in the last three months.
Jobs were cut at the slowest rate for twenty months and inflation on input costs was the strongest since August 2008. The index is now at 58.2, up from 53.1 last month - the biggest gain since September 2007.
Most of the new activity was seen in housebuilding with residential construction seeing the fastest pace of increase since August 2007.
Contributors to the study have forecast more rises in new orders and further growth over the year.
Last month's survey reported declines in both employment and activity.