The construction sector which accounts for more than a tenth of the economy, declined for a sixth successive month in November as building slowed at a record pace.
An index tracking construction fell to 42 last month from 43.5 in October, Ulster Bank said in a monthly report published this morning.
A reading below 50 indicates contraction.
Pat McArdle, chief economist at Ulster Bank, said today: "Builders seem to be finishing existing schemes but not taking on new work. November was another weak month."
Within the figures was evidence that civil engineering activity increased solidly last month compared with October. Construction sector employment also continued to decline last month.
House prices fell 1.3 per cent in October, the most in at least 11 years according to the Irish Life & Permanent index last month.
The slow down has been caused by a range of factors including eight European Central Bank interest-rate increases in two years and a affordability problems as average house now costs up to 15 times earnings.
Last week the Minister for Finance Mr Cowen reformed the stamp duty regime in a bid to restart the market.