The ONS has attributed the fall in output solely to the decrease in new work which saw a 5.0% fall as repair and maintenance increased by 4.0%, according to the data.

In December alone output is estimated to have fallen by 0.5% in terms of volume, with new work decreasing by 1.1% and maintenance and repair increasing 0.4%.

Q4 saw a total construction new orders fall by 13.1%, compared with Q3 2023, with the private commercial sector falling by 18.1% and the industrial sector falling 27.6%.

Despite the fall in Q4, 2023 saw a third consecutive rise in construction output with last year seeing a 2.0% rise compared with 2022.

Industry professionals gave their take on the latest release from the ONS.

Terry Woodley, managing director of development finance at Shawbrook, commented: “Construction output ended 2023 on a subdued note, with high borrowing costs continuing their vice-like grip on the sector.

“However, there are encouraging predictions that a continued hold or drop in interest rates, partnered with retreating recession risks, could prompt more activity, especially in the house building sector.

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“Developers should remain resilient while keeping an eye out for any changes that the Spring Statement could bring, particularly if the Government decides to ease planning constraints.”

Michael Wynne, director of housebuilder, Q New Homes, added: “Demand for residential construction projects remains fragile, and levels of work continue to slide – even if the rate of decline is easing.

“While the falling cost of mortgages since the start of 2024 has encouraged many would-be buyers who sat out 2023 to restart their search for a new home, this has yet to feed through to the construction front line.

“Residential property developers, who typically look ahead 18 to 24 months in their business planning, still face high material, labour and borrowing costs, and only the leanest and best integrated are able to commit to a full pipeline of projects.

“Nevertheless there is a growing sense that the worst might be past, and this is gradually lifting sentiment.

“Election years tend to bring uncertainty and this has traditionally throttled back demand, but 2024 comes after an extended period of stagnation — and while the recessionary backdrop is far from rosy, cheaper mortgages and the release of pent-up buyer demand should give housebuilders a much-needed shot in the arm over coming months.”