The construction sector in Scotland has seen an annual decline of 10%, according to the latest report on Gross Domestic Product (GDP).

Construction sector output grew by 2% during the second quarter of 2012.

The report was released by Scotland’s Chief Statistician and shows that GDP as a whole fell by 0.4% during the second quarter of 2012. On an annual basis, growth was flat.

The services sector saw a growth of 0.2% and the production sector a decline of 3.8% during the second quarter of 2012.

The Confederation of British Industry (CBI) Scotland has expressed concern following the report.

Deputy First Minister Nicola Sturgeon said this was a clear argument for Scottish independence.

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She said: "Today’s figures show once again that Scotland is suffering under the UK Government’s do-nothing economic policy.

"Even without the full economic powers of an independent nation and in the face of Westminster’s cuts, this Government is doing everything it can to stimulate Scotland’s economy and protect families, businesses and front line services.

"Last month we announced that we are providing an additional £40m for affordable housing, we are funding even more new school buildings; and we are helping small and medium sized businesses create up to 10,000 opportunities through a national employer recruitment initiative.

"This comes on top of the £485m additional investment we have announced since last year's Spending Review and the £2.5bn of infrastructure investment set out last year."

She blamed the continued contraction on the UK Chancellor’s fiscal strategy, saying: "This isn’t simply the view of the Scottish Government but also of the IMF. Last week they showed that deficit reduction policies are having an even greater negative impact on the economy than first thought.

"It’s time for the Chancellor to listen, heed this advice and take action on jobs and growth."

(IT)