The latest Office for National Statistics (ONS) data states output declined by 0.9% in the three-month on three-month series in September, following on from a 0.5% fall between April and June.
ONS said the decline, which is the first consecutive quarter-on-quarter decline in current estimates since Q3 2012, was caused by decreases in both repair and maintenance, which fell 1.4% and all new work, which fell 0.7%.
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Overall, output fell 1.6% month-on-month in September 2017, stemming from falls of 2.1% in repair and maintenance and 1.3% in all new work.
Michael Thirkettle, Chief Executive of industry consultancy McBains, said the figures indicate the shadow of Brexit "still looms large over the industry".
"The fall in the value of the pound since the EU referendum causing imported building materials costs to rise, while company and UK investors caution is holding back investment in new projects, so many contractors' margins are shrinking," he said.
"Commercial and industrial sectors that rely on ambitious multi-million pound construction projects are the hardest hit, and only new builds in the private house sector, propped up by the likes of Help to Buy loans, are offering any glimmer of hope at the moment.
"Confidence is in short supply and that's certainly a thought Philip Hammond needs to grapple with in his Autumn Budget in a couple of weeks."
(LM/MH)
