Latest survey suggests almost 80% of Scottish construction companies predict activity will fall next year

Confidence in Scottish construction has dropped again and almost four in five businesses think that workloads will decline in 2011.

According to the Scottish Construction Monitor, which surveys members of the Scottish Building Federation (SBF), confidence fell for the fifth consecutive quarter.

It warned that if members’ predictions were realised the industry north of the border could see 11,000 jobs lost in 2011, and output would drop by £600m.

Two-thirds of those surveyed expected to reduce the size of their workforces, and only 5% said they would increase them.

In the second quarter of the year Scottish construction grew by 10.4%, boosting Scottish economic growth to 1.3%, 0.1% above the national average growth for the quarter.