The economic recovery in the SME construction sector is under threat from rising building costs and material shortages warns the Federation of Master Builders (FMB).

Commenting on the results of the FMB's State of Trade Survey for the first three months of 2014, Brian Berry, Chief Executive of the FMB, said: "Rising building costs and material shortages are causing serious concern in the building industry with 80% of SME firms expecting the situation to worsen over the next six months.

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"Although our latest snapshot is the fourth successive quarter showing positive results for workloads, employment and enquiries, this could be undermined by a spike in prices and costs.

"Materials prices are generally around 10% higher across the board with small construction firms highlighting timber products such as sheet materials and timber fencing as being particularly expensive.

"The increase in the price of timber fencing is largely due to the severe storms that battered the UK during the winter."

(CD/JP)