New figures have revealed Scotland's construction output fell by 1.9% during the second quarter of 2016.

Statistics by Scotland's Chief Statistician state the country's economy grew by 0.4% compared to the previous three months. On an annual basis, the overall Scottish GDP grew by 0.7%.

Both the Electricity & Gas industries experienced the greatest contraction, accounting for 0.2%. However, the Business Services & Finance industries grew by 0.4% during the second quarter, contributing to an overall 0.5% rise in the sector. In addition, the production sector increased by 0.3%.

Economy Secretary Keith Brown said the figures represent the highest rate of quarterly growth since the start of 2015.

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"These figures show that prior to the vote to leave the EU Scotland's economy was growing," he said.

"Despite concerns surrounding the EU referendum, the fundamentals of Scotland's economy are strong and recent successes, such as Scotland securing more foreign development investment projects in 2015 than any other part of the UK outside London, are to be welcomed.

"The Bank of Scotland's latest PMI showed Scotland's private sector output expanding in September and our labour market now showed record quarterly growth employment over May-July 2016, and the unemployment rate is now below that of the UK.

"But in the months surrounding the EU referendum, there is no doubt that businesses faced challenging circumstances and damaging uncertainty. These are global issues and Scotland is not immune.

"We have constantly made clear our concerns that the vote will have a negative impact on investment and our economy. That is why protecting Scotland's relationship with the EU, and continued membership of the single market is crucial – so we can build on some of these positive economic trends, rather than have this progress placed under serious threat."

(LM)