Scotland's construction industry 'stuck in a state of limbo' over Brexit

Worries over Brexit and the constitution are causing uncertainty in Scotland's construction industry, despite confidence otherwise remaining steady, according to a survey.

The Scottish Construction Monitor, compiled by industry trade association the Scottish Building Federation, quizzed hundreds of building companies from Orkney to the Borders.

Employers were asked to rate how confident they feel about business prospects over the next 12 months compared to the past year.

The results rated overall confidence in the industry as marginally positive for the third quarter in a row after a slump at the end of June following the EU referendum vote.

But industry representatives say Brexit and Scotland's constitutional question is causing uncertainty in the industry.

Vaughan Hart, managing director, Scottish Building Federation, said: Looking at this latest set of results, there is a real sense that the industry remains stuck in a state of limbo just now.

The recent economic signs have been positive with strong output and rising employment within the Scottish construction sector.

At the same time, ongoing uncertainty on the political and constitutional fronts is making industry employers feel quite nervous about the future outlook.''

The poll asked employers questions about their experience and expectations regarding employee numbers and future employment in the industry.

It reported that 43% of respondents saw employee numbers rise over the past 12 months compared to 20% who reported a decline.

The remaining 37%, however, have seen no change in the size of their workforce over that period.

Of the 56 Scottish construction firms polled in the analysis, 41% expect their workforce to increase over the next 12 months, while 14% expect to reduce their employees, while 43% expect employment to remain stable.

Brexit was rated very likely'' orsomewhat likely'' to happen by 82% of respondents.

But 40% did not know the impact it would have and 42% were unsure about the impact of leaving the EU would have on the industry.

Of those questioned, 33% predicted Brexit would have a negative impact on the Scottish construction sector compared to 16% who think it will have no impact and 9% who think the impact will be positive.

Mr Hart added: Our general message to government and to politicians across all parties continues to be that the more certainty and stability they can provide, the more confident construction industry employers will feel and the stronger position they will be in to boost employment and to generate output that benefits the economy as a whole.''