Statistics announced by Scotland's Chief Statistician show the country's economy grew by 0.8% int the first quarter of this year, driven by expansion in the manufacturing sector.
In addition output in the metals industry, which includes much of the oil and gas supply chain, also increased, following on from the re-opening of the Dalzell steel plant in Motherwell by the Scottish Government. Recent business survey evidence also suggests output in the oil and gas supply chain may be stabilising.
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However, the country's construction sector contracted by 0.7%, the fifth consecutive quarter of contraction in the industry.
David Ogilvie, Interim Director of Policy at trade body Homes for Scotland, said the ongoing decline is "extremely concerning" and "reflects the view of our members that it has never been harder to open new sites and get much needed homes out of the ground".
"It is particularly frustrating for us knowing that, if a more supportive policy framework to encourage housing investment was in place, home building could make even more of a contribution to boosting Scotland's economic growth," he said.
"For example, research shows that a return to building pre-recession levels of 25,000 homes per annum could generate an extra £1.9bn in Gross Value Added each year.
"Crucially, this would help to fill the economic void that will be left by large, soon-to-be-completed infrastructure projects as well as support thousands of extra jobs and training opportunities. It also offers significant wider social benefits such as improved health and education outcomes."
(LM/MH)
