Latest estimates for GDP growth show construction shrank by 2.5% in the third quarter, despite Government pledges to use construction to drive growth in the economy.
Overall the UK economy bounced back by 1% in the third quarter, but still remains below where it was a year ago.
The other main industries all followed the national trend with general production up 1.1% and service industries rebounding 1.3%.
But the construction industry dived deeper into recession in the third quarter, compared to the previous three months.
The latest figure compounds the 3% fall in construction during the second quarter, taking GDP to the lowest level since 2000.
Construction is now shrinking on an annualised basis of around 1%, or £1bn a month.
The poor performance underlines the need for construction to get an immediate boost rather than the direction Government policies are taking which are likely to promote growth in the longer term.
Mike Leonard, director of the Modern Masonry Alliance, said: “The long term recovery of our economy will not be delivered whilst construction continues to decline.
“The PM might want to Get Britain Building but the Government’s policies are just not delivering.
“By funding and building 25000 additional public rented homes we will see positive outcomes in terms of jobs, growth and good quality homes for those who cannot buy in the private sector.”