The amount of infrastructure construction projects has fallen in the three months to June.

A report just out from the RICS showed that workloads dropped despite the government's ongoing attempts to boost investment and growth through privately funded projects.

The net balance of workloads across the UK was -4% and little movement has now been seen in the sector since the end of 2009.

In Scotland, like in the north of England and in Northern Ireland, construction activity declined, the latest Construction Market Survey found.


While across the country 4% more respondents said their workload had fallen than risen, the startling Scottish figure was that 22% more companies reported falls rather than rises in workloads.

Pressure continues to be greatest in the public sector.

Perhaps unsurprisingly, given the economic climate, profit expectations continue to deteriorate, with the net balance falling from -18 to -26 percent, reflecting the continuing pressure on margins as input costs rise more rapidly than output prices.

The increasing competition has even led some companies to bid for work at below cost price in order to secure contracts.

Surveyors in Scotland are now predicting that construction workloads will decline further over the next 12 months.

Simon Rubinsohn, RICS Chief Economist, said: "More action to back up the rhetoric is urgently needed if the construction industry is to play a meaningful role in driving the economy forward over the next few years."

(NE)