The Scottish construction industry has "real concerns" regarding the potential impact of Brexit, according to the Federation of Master Builders (FMB).

The latest State of Trade Survey for Q2 2016 shows the sector was growing prior to the EU referendum, jumping 15% to a net balance of +21, the highest reading since Q4 in 2007.

Gordon Nelson, Director of FMB Scotland, said since the Brexit result was not widely foreseen, the vote will "undoubtedly impact" businesses and consumer sentiment during the second half of 2016.

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"Scottish construction SMEs are in a much stronger place to deal with any uncertainty generated by Brexit than they were a few years ago, but will be concerned that the hard-earned gains they’ve made will be jeopardised by retrenching consumers who may put off making significant investments in the short term," he said.

"Moreover, two thirds of SME bosses were already anticipating rising material costs, an issue likely to be amplified by a rapidly weakening pound.

"What businesses need is stability and the Scottish Government has a responsibility to provide a clear blueprint detailing what steps it will take to ward off any potential economic downturn. There is much it can do to support construction SMEs, no more so than creating a level playing field when it comes to winning public sector work."

(LM/CD)