Figures published today by the Office for National Statistics (ONS) revealed construction volumes fell by a monthly 1.5 percent in August after a revised increase of 0.5 percent in July. All new work dropped by 1.4 per cent, while repair and maintenance fell 1.5 per cent.

Year-on-year figures also painted a bleak picture for the sector, with construction rising by just 0.2 per cent compared with August 2015, far below consensus forecasts for a 1.2 per cent jump.

A major driver of the slowdown was a drop in infrastructure activity, which fell 5.1 per cent in August following a 6.1 per cent increase the previous month.

Infrastructure was down 9.3 per cent compared to August 2015, which marks the sixth consecutive month of year-on-year decreases, the ONS noted. Infrastructure accounts for projects like roads, water, sewage, electricity and railways.

Gordon Reid, business development manager at Kier Construction Scotland, which recently announced two significant contract wins in the higher education sector, has a more positive outlook on the shape of the construction industry in Scotland.

“Whilst there may be some degree of pause and reflection in some parts of the market, Kier Construction Scotland is not seeing any material slowdown of activity,” he said.

Gordon Reid added: “Kier Construction Scotland was appointed by the University of Edinburgh to carry out refurbishment work on the College of Art. We were also appointed by Glasgow School of Art to deliver the overall renovation of the iconic Mackintosh building, a project which will bring together conservation, craftsmanship and construction skills with modern technology and design innovation.

“With these exciting projects comes the opportunity to attract a diverse range of new talent to the industry. We continue to focus on showcasing the breadth of career opportunities that the construction industry has to offer, and highlighting the significant boost that our sector delivers to the Scottish economy.”

Similarly, Allan Callaghan, managing director of Cruden Building & Renewals, remained pragmatic regarding the statistics.

He said: “While disappointing, these latest figures come as no surprise following a period of political and economic uncertainly coupled with a rise in material costs.

“Yet despite these challenges, our order book has continued to grow, supported by our mixed offering and investment in staff and training. Our annual results released this week highlighted our seventeenth consecutive year of profitable trading which, together with our flexible business model and positive cash position, will support activity over the coming months and allow us to take advantage of opportunities when they arise.

“I’m confident that those in the construction sector will continue to weather the storm and Cruden in particular will continue our steady and sustainable growth over the coming months and into 2017.”