Construction Industry's confidence rating in Scotland has dropped by nine points since the last survey and now stands at minus 28 - six points below where it was at the beginning of 2011.
Two out of three Scottish building firms responding to the survey expect publicly funded construction activity to drop in 2012. A third of firms expect construction employment to fall, outnumbering those predicting a rise in Construction Industry jobs this year by a factor of more than three to one. Statistics shows that the Scottish construction sector has already lost 30,000 jobs over the 12 months to September 2011. Most companies anticipate another tough year for housebuilding and the private sector.
Private sector is expected to perform better than the public sector, however private sector construction activity faces limited prospects in 2012, with 44% of employers saying they expect activity to stay the same and 41% forecasting a decline.
SBF chief executive Michael Levack said the survey results reconfirmed earlier predictions of another tough year ahead for Scotland’s building industry.
"2012 looks set to be a particularly bad year for public sector construction output, with two out of every three employers expecting the level of publicly funded activity to fall. That's a natural consequence of the cuts to public funding that will take effect over the next few years. But this survey finds little prospect of the private sector filling that gap, with 85% of firms expecting privately funded activity either to stay constant or to decline."