The Federation of Master Builders (FMB) has said it is "critical" that Welsh housing and infrastructure plans are still delivered following the EU referendum.

The organisation is concerned for future construction projects as Brexit will result in the loss of EU structural funding.

It added suggestions from the Secretary of State for Wales, Alun Cairns, that funding will not be replaced is "alarming".

The FMB's latest State of Trade Survey for Q2 2016 indicates workloads increase for Welsh construction SMEs while enquiries declined in the build up to the referendum.

Ifan Glyn, Director of FMB Cymru, said: "Overall, employment for Welsh SMEs rose during Q2 of 2016, demonstrating the growing strength of a sector that has well and truly bounced back after some challenging years following the economic downturn.

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"Seven out of eight of the last quarters have been positive, reflecting increased confidence among businesses and consumers alike. However, a declining number of enquiries in the build-up to the referendum is ominous, and we must hope this was only a dip and not a bad omen.

"The prospect of rising prices and declining private demand underlines the need for both the UK Government and the Welsh Government to support the construction sector, especially as the implications of the vote to leave the EU are still not fully understood. Wales has been a net beneficiary from EU structural funding and the loss of this investment is a concern for construction bosses, who might directly rely on this work or operate as part of the supply chain.

"We've been encouraged by the messages coming from our Welsh Ministers, but it's critical that the key housing and infrastructure plans for the country – so crucial to our future prosperity – are delivered as intended."

(LM/CD)