The latest figures from the Central Statistics Office show that the volume of output in the building and construction sector fell by 6.4% during the months of April to June compared to the previous three month period.
Breaking down the figures, the CSO says that output in the civil engineering sector fell by 3.6%, while the residential sector slumped by 7.2% and non-residential building activity decreased by 3%.
On an annual basis, the industry declined by 23.4% in the second quarter of 2011 compared to the same time last year. The value of production also fell by 25.6%.
The industry has been in decline since 2007.
The CSO also said that in the year to the second quarter of 2011, output in the sector fell by 3% and 5.2% in the wider European Union and euro zone respectively.
The largest increases were seen in Poland (19.7%), Lithuania (16.7%) and Estonia (11.5%). The biggest falls were recorded in Greece (39.9%), Slovenia (31.1%), and Spain (27.9%).
Meanwhile, separate figures from the CSO show that the level of foreign direct investment into Ireland increased from €172 billion to €185 billion at the end of 2010.
The figures show that investment from North America was the biggest single factor, rising by €15 billion over the past year. Today's figures also reveal the earnings of foreign companies based in Ireland rose by €3.8 billion to €38.8 billion last year.
