The dip was attributed to bad weather but also highlights ongoing fragile market confidence amid wider economic uncertainties.
This decrease in monthly output came solely from a fall in new work (0.7%), while repair and maintenance grew by 0.4%.
Main contributors to the monthly decrease were private commercial new work, and private housing new work, which fell by 6.1% and 1.8%, respectively.
Clive Docwra, managing director of property and construction consultancy McBains, said: “The industry will be concerned to see private commercial new work falling so steeply.
“The worry is that longer term stagnation in the wider economy risks having a continued impact in terms of investor uncertainty, which may lead to further projects being put on hold.”
Scott Motley, head of programme, project and cost management at AECOM, added: “A negative reading tallies with other industry barometers and confirms the notable slowdown seen since the start of the year.
“With the UK’s much-needed infrastructure upgrades at the heart of the government’s growth strategy, the latest raft of announcements from Whitehall brings reason for optimism for contractors concerned by challenging economic conditions.
“Indeed, the much-trailed Planning & Infrastructure Bill is the most significant shift towards a properly supported, long-term infrastructure strategy in a generation.
“The Bill should ultimately facilitate greater private sector investment – the need for which is likely to come into even sharper focus as the Chancellor potentially eyes up more cuts to local authority funding ahead of the Spring Statement.”