Latest data from the Office for National Statistics, published today, show that total volume of construction output in the fourth quarter of 2011 fell by 0.5% compared with the previous quarter, putting a dampener on the full year growth figure.
However, year on year, output in the Q4 was still up 0.9% on Q4 2010.
The data is seasonally adjusted and based on constant (2005) prices.
By sector, Q4 2011 saw new work fall by 0.6%, and repair and maintenance fall by 0.3% compared with Q3 2011.
Year on year, new work was up 1.4% on Q4 2010, while repair and maintenance remained largely unchanged.
The ONS data seems to confirm the findings of the latest workloads survey of the Royal Institution of Chartered Surveyors, which this week also reported a slow-down in the fourth quarter of 2011.
Commenting on the latest figures, Construction Products Association economist Noble Francis said: "The trend in construction output is clearly still downwards at a time when government acknowledges that construction is one of the sectors necessary to help the economy avoid slipping back into recession. Overall these figures only serve to reinforce our concerns about the prospects for the industry over the next 18 months.
"The association’s latest forecasts suggest that construction output will fall by more than 5% during 2012 and there will be no significant recovery in the industry until 2014. This year will see a dramatic 14% fall in public sector construction as spending cuts begin to bite. The real concern, however, is that private sector construction is not recovering fast enough to offset this and will fall further during 2012, with the private commercial sector 5% lower than this year. With forecasts by the Ernst & Young Item Club this week suggesting that bank lending is likely to fall over the next 12 months, this will only exacerbate the problems for the construction industry and the economy as a whole."
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