PRIVATE SECTOR KEEPS SCOTS CONSTRUCTION BUOYANT…

Output from the Scottish construction sector seems to have remained buoyant during the three months immediately following the UK referendum vote to leave the European Union.

Total output from the Scottish construction sector during the third quarter hit £3.7 billion, down only marginally on the same period in 2015, when total industry output was £3.9 billion.

However, output from the private housing and private commercial sectors and from repair and maintenance are all up compared to the third quarter of 2015.

This helped to offset a decline in infrastructure output, down from more than £1 billion in Q3 2015 to £722 million during the three months to September this year.

Commenting on the official figures released last week by the Scottish government, Scottish Building Federation Managing Director Vaughan Hart said, “These new figures suggest that the Brexit vote has had no immediate effect on the performance of the Scottish construction sector.

“It’s encouraging to see output from the private sector on the rise compared to the same period last year. We anticipated a slowdown in infrastructure activity as major projects such as the Queensferry Crossing draw to a close.

“More concerning is an ongoing slump in private industrial output with the removal of empty property rates relief having a negative impact on that sector of the industry.

“Future performance will depend on the wider picture for Scotland’s economy. With the Finance Secretary due to present his budget we will be looking for signs of a further boost to capital spending as a consequence of the commitments made by the Chancellor in his Autumn Statement.

“That should help to keep the construction sector in reasonable health as we look ahead to 2017.”

 

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