The UK Government must commit to investing in capital projects to allay fears following the EU referendum, according to the Federation of Master Builders (FMB).

The latest statistics from the Office for National Statistics (ONS) reveals construction output decreased by 0.4% between April and June.

Brian Berry, Chief Executive of the FMB, said the Government now must now "take bold action" in order to tackle the threat of a construction recession.

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"The construction industry has grown steadily over the past few years and for the sector to experience two consecutive quarters of negative growth demonstrates the powerful effect uncertainty and a lack of confidence can have," he said.

"A firm commitment to invest public funds in capital projects such as house building and infrastructure would go a long way to assuaging fears that demand will dive in the wake of Brexit.

"The country's housing crisis and the enormous skills shortage our sector faces owe much to how the construction industry suffered during the last economic downturn – it's pivotal that we learn from those mistakes and find a way to keep Britain building."

(LM/MH)