The construction sector experienced its sharpest contraction since October in April, new figures show.
The latest survey of the industry sees poor economic confidence hitting work volumes and employment levels.
The Ulster Bank's construction Purchasing Managers' Index - which tracks changes in total construction activity - fell to 45.4 in April from 46.7 in March.
Ulster Bank said that companies reported weak economic conditions and a lack of confidence among customers.
The index showed that weakness was particularly notable in the housing sector last month, with the fall in activity the fastest since September 2011. It is estimated that 5,000 homes are now being built in Ireland each year, compared to 78,000 homes built around the peak of the housing boom in 2007.
Commercial activity decreased for the third month in a row, today's index shows, but the fall was only slight. Activity in the civil engineering sector stood at 43.1 in April from 37 in March. Any figure under 50 signals contraction in a sector, while a figure above 50 signals growth.
Ulster Bank's chief economist Simon Barry said the figures for manufacturing and services point to expanding activity levels in internationally-traded sectors, but the domestic construction sector continues to contract.
Respondents to the Ulster Bank survey predict that activity in their sector will increase in the coming 12 months, but sentiment is at its lowest since last October.
