The 0.2% fall in GDP in the first quarter of the year pushes the UK into a double dip recession and will increase pressure on the Government to stimulate the economy.
The latest economic data showed construction dragging down the overall economy after it fell 3% in the first three months of 2012.
This also means the industry is now officially in recession again after a 0.2% fall in GDP in the last quarter of 2011.
Construction output decreased by 0.5% over the rolling 12 months to Q1 2012.
Mike Leonard, director of the Modern Masonry Alliance, said: “This double dip is hugely damaging.
“We have repeatedly warned that a failure to drive the construction of new homes, RMI and infrastructure would result in a lack of growth and rising unemployment.
“The requirement to cut overall public spending must be matched by a strategy for sustainable growth. 92 pence in the £1 spent on construction stays in the UK economy creating jobs and long term prosperity.
He added: “We must now do the right thing for UK PLC, which should start with a program to build 25,000 additional social homes over the next 18 months.
“This must be a real commitment backed up by funding, land being made available and strong guidance and buy in from local authorities. The process needs to be simple, avoiding the high legal costs that surround the sector and deprive people of homes.”
