Latest GDP figures for the Scottish economy have shown a fourth consecutive quarter of stagnation in the Scottish construction industry.

During the third quarter of 2011, output from the industry fell by 1.2%. This followed falls in output of 1.3%, 1.8% and 1.4% over the preceding three quarters.

Scottish Building Federation Chief Executive Michael Levack commented: "Continued difficult trading conditions for the industry in the third quarter of 2011 means we have now witnessed a full year of economic output figures where the Scottish construction sector has been on a consistent downward path. Looking at the corresponding employment statistics, this translates to the loss of 30,000 construction jobs – or more than 15% of the workforce between September 2010 and September 2011.

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"Coupled with a series of high profile reports of construction firms forced into administration by these tough trading conditions, there should be no doubt about the scale of the challenge our industry continues to face.

"I can only reiterate my plea to ministers at Westminster and Holyrood to re-assess their spending priorities in favour of greater capital investment, to accelerate badly needed reforms to the planning and procurement systems to help get more projects off the ground and to further bolster support for apprenticeships and skills development in our industry."

(GK/DW)