Scotland's economy: construction sector confidence crumbles

Optimism among employers in the Scottish construction sector has fallen into negative territory amid fears over future work prospects as a period of record output comes to an end, data published today reveals.

Builders are concerned about a 'major contraction' as key projects come to an end. Picture: Michael Gillen

The latest report from the Scottish Building Federation (SBF) shows that optimism for the next 12 months fell seven points to -5 this quarter after three consecutive periods where the level was “marginally positive” at +2.

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The SBF said building employers are concerned that, “as major projects such as the Queensferry Crossing and the Aberdeen Western Peripheral Route draw to a close, the industry is likely to suffer a major contraction due to an apparent shortage of other work to fill the gap”.

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President and managing director of Orkney Builders, Stephen Kemp, said the Scottish Government must now focus on backing smaller-scale projects, without which “we could be facing a cliff edge that tips the industry – and the wider Scottish economy – into recession”.

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