Latest official GDP figures show that construction is now the worst performer of the major UK industries.
The lastest preliminary estimate for UK GDP shows construction shrank by 2.5% in the third quarter compared to the previous three months.
The latest figure compounds the 3% fall in the second quarter, taking GDP to the lowest level since 2000.
Construction is shrinking on an annualised basis of around 1%, or £1bn a month.
Overall the UK economy bounced back by 1% in the third quarter but remains below where it was a year ago.
The other main industries all followed the national trend with general production up 1.1% and services industries rebounding 1.3%.
Civil Engineering Contractors Association director of external affairs Alasdair Reisner said: “The whole of the UK has been waiting for the country to emerge from the double-dip recession. As such today’s news is welcome as it indicates a return to much-needed growth.
“Yet it is clear that the construction sector has declined even further in the last quarter. Given the importance of the industry to the UK economy, delivering projects that support growth in other sectors, as well as employment for millions of UK workers, it is vital that steps are taken to rebuild UK construction.
“The plummeting output for the sector should give the government grave cause for concern. Any continuation of these declines runs the risk of dragging the UK into a triple-dip recession.
“We need swift action to unlock the potential of the construction industry so that it can play its role in the sustained recovery of the UK economy.”