The decrease has been attributed to falls in both new work (0.7% fall) and repair and maintenance (0.1% fall).

At the sector level, five out of the nine sectors saw a fall in March 2024, with the main contributors to the monthly decrease seen in infrastructure new work, and non-housing repair and maintenance, which decreased 3.6% and 2.4%, respectively.

Quarterly construction output saw a decrease of 0.9% in Quarter 1 (Jan to Mar) 2024 compared with Quarter 4 (Oct to Dec) 2023; this came solely from a decrease in new work (1.8% fall), as repair and maintenance increased by 0.3%.

Total construction new orders increased 15.9% (£1,436 million) in Quarter 1 2024 compared with Quarter 4 2023; this quarterly increase came mainly from private commercial new work and public other new work, which increased 27.9% (£700 million) and 43.8% (£536 million), respectively.

The annual rate of construction output price growth was 1.5% in the 12 months to March 2024; this has slowed from the record annual price growth in May 2022 and June 2022 (10.7%).

Scott Motley, head of programme, project and cost management at AECOM, said: “A downturn in output puts paid to talk of a recovery for now as the sector continues to endure challenging economic conditions. Indeed, we expect the pipeline of new work to reduce in the second half of 2024, especially while interest rates remain high and the impending general election gives rise to a pause in infrastructure investment decisions.

“As such, order books are most likely to be filled by short-term repair and maintenance work as firms continue to adopt a precautionary two-stage approach to major tenders to avoid overstretching themselves in a competitive market.”

Clive Docwra, managing director of property and construction consultancy McBains, added: “After last month’s figures showed a fall in output, today’s news will give the construction sector further cause for concern.

“With the broader economic data showing the economy grew by 0.6% in the first quarter of 2024 and is recovering from last year’s technical recession, it demonstrates that growth in the construction sector is struggling to keep pace with the wider recovery.

“A particular worry is that five of the nine construction work sectors experienced a decline in March. Infrastructure contracts, which have propped up much of the industry in recent months, saw a 3.6% decrease.

“A continuing number of variables – not least an impending general election – means that we expect the sector will continue to experience ups and downs over the next few months.”