The latest Markit/CIPS UK Construction PMI survey reveals the sector saw the lowest score returned since June 2013, down from 57.8 in December to 55 for January.
Any figure above 50 indicates growth in the industry.
In addition, survey respondents reported the lowest business confidence since December 2014, while job creation eased to its slowest for almost two-and-a-half years.
Firms remained optimistic about their growth prospects over the next 12 months, with around 46% expecting a rise in business activity with 6% predicting a reduction.
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However, the degree of positivity eased for the third month running and was the lowest since December 2014.
While there were widespread reports of strong order books and planned company expansions in 2016, some firms highlighted concerns that underlying demand conditions had started to soften.
Tim Moore, Senior Economist at Markit and author of the survey, said: "UK construction firms struggled for momentum at the start of this year, with heightened economic uncertainty acting as a brake on new orders and contributing to one of the weakest rises in output levels since the summer of 2013. Softer growth of house building activity and a more subdued increase in commercial construction were the main factors behind the slowdown.
"Taken together with the slowdown in new order growth, the latest survey suggests that construction companies are braced for a relatively subdued first quarter."
(LM/CD)
