The Scottish construction sector has remained "resilient" despite the UK's decision to leave the European Union, according to the Federation of Master Builders (FMB).

In its latest State of Trade Survey, the organisation said demand for domestic building work and new build homes has so far "defied any significant dip".

Overall, a 13% drop took Scotland's net balance to +8. However, around 21% of weighted responses were positive, down from 33%. In contrast, the share of weighted responses which were negative edged up to 13% from 12%. Two thirds of weighted responses were neutral, up from 55%.

Gordon Nelson, Director of FMB Scotland, said most firms are either predicting steady or growing workloads for the next few months, "demonstrating an underlying resilience to the Scottish construction sector".

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"However, given the uncharted waters we're about to enter, few construction bosses will be complacent," he said.

"Most will remember the challenges that arose as a result of the uncertainty created by the last Scottish independence referendum. When you combine the possibility of a second independence referendum, and the prospect of further disruption being caused by the triggering of Article 50 in March, then the Westminster and Holyrood Governments must do all that they can to steady the nerves of industry and provide some certainty."

Mr Nelson added: "Our survey also highlights the severity of the skills gap this country faces, almost two-thirds of firms are struggling to hire bricklayers and 55% are experiencing difficulties hiring carpenters and joiners. If the UK leaves the European Single Market, this shortfall may well be compounded by the possibility of an end to the freedom of movement of people, which will only make the situation worse. With less than six months until the UK-wide Apprenticeship Levy is introduced in April next year, we're still awaiting confirmation from the Scottish Government that it will use the funds raised by the levy for apprenticeships."

(LM/MH)