The ONS said construction output volumes in the three months to August were 1.9 percent lower than in the same period a year ago.
The construction sector, which makes up 7.6 percent of gross domestic product, grew by 1.1 percent between April and June, but economists said Friday’s data suggested a weaker performance in the third quarter.
“Construction industry output appears to be collapsing,” said Chris Williamson, economist at Markit.
“The downturn in the construction sector provides further cause to worry about the overall health of the economy.”
Britain’s economy has stagnated for almost a year and there are increasing concerns it could slide back into recession as government spending cuts and a slowdown in some of Britain’s main trading partners hit demand.
A survey of purchasing managers showed British construction activity stagnated in September after a contraction in the home-building and civil engineering sectors. This followed a slowdown in the pace of growth in August.
“The construction sector faces an extremely challenging environment, which threatens to limit activity over the coming months,” said Howard Archer, economist at Global Insight.
