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”.

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”.