The latest figures are a stark a contrast from the 2.8% growth seen month-on-month from June to July.

Despite the drop in August, construction output was still 4% up on the previous year and industry experts pointed to resurgent private sector growth as a cause for continued optimism.

Private industrial and private housing new work rose 3.9% and 1.6% respectively in August, while public other new work and private housing repair and maintenance fell by 3.2% and 1.8% respectively.

Steve McGuckin, UK managing director of consultancy, Turner & Townsend, said: “August’s underwhelming figures are a blip, not a trip. Several public sector construction programmes are winding down, so the 3.2% fall in public sector output was to be expected.

“But it is encouraging that the resurgent private sector construction is mitigating the impact so well.”

He added: “The private sector rode to the rescue of the declining public sector in August, and we expect that trend to continue.

“With public sector investment in property likely to be squeezed at least until after the next election, the private sector has a great burden of expectation on it.

“In London, with high levels of investor confidence, a real sense of momentum and a strengthening order book, it should be more than up to the task. The UK as a whole needs the ripple effect to start there.”

Construction Products Association Economics Director, Noble Francis said: “Even excluding private housing, the overall industry was up 1.7% from this time a year ago.

“Other areas of strength included commercial offices and retail, which rose 8.4% year-on-year, and the repair and maintenance sectors for both non-housing and private housing, which saw year-on-year growth of 4.1% and 5.6%, respectively.”

Three-month trend figures for June to August showed construction output increased by 3% compared to the year before.

Over the same period new housing showed growth hit 14.7%, the largest three month on a year growth since January to March 2011.

Construction output grew by 2.4% when compared with the previous three months (March to May 2013).