More investment is needed for Scottish construction firms through the public sector procurement process, according to the Scottish Chambers of Commerce (SCC).

An SCC survey revealed the construction sector increased between the second and third quarters.

The industry procured an impressive performance as it revealed positive trend balances of total contracts (20%), total sales (33%), profits (14%), employment (33%) and total investment expenditure (32%).

However, slower growth was experienced among the Manufacturing, Retail & Wholesales and Financial & Business Service sectors.

In addition, there was a decline in domestic Scottish orders, with a net balance of -3.4%.

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Liz Cameron OBE, Director and Chief Executive of SCC, said the results should trigger an 'amber warning light' for Government's north and south of the border.

"Despite another extremely positive summer for our tourism sector, there is a trend of slower growth among other parts of our economy," she said.

"In addition, the apparent slowing down of investment growth in many businesses signals a direction of travel which could lead to declining levels of economic growth.

"There is further evidence of the continuing effects of low oil prices on the Scottish economy, with the performance of oil and gas service businesses again dampening results in the service sector. The picture in manufacturing is also mixed, with sales up only marginally and profitability declining.

"The construction sector remains broadly positive, though once again businesses have reported a decline in public sector contracts. This should prompt our Governments to consider renewing their focus on developing Scotland's infrastructure and supporting investment in Scottish businesses through the public sector procurement process.

"Although Scotland's economy is now performing above the level we were at before the recession, we cannot and must not take future growth for granted.

(LM/MH)