Construction output fell by 26.7 per cent in the last three months of 2008 compared to the same period a year earlier, according to the Central Statistics Office (CSO).
The value of production decreased by 24.3 per cent, the latest figures show.
The fall in volume was largely due to a 55.4 per cent decline in residential building work, which was partly offset by a 3.3 per cent rise in non-residential building work.
Output in civil engineering fell by 3.3 per cent over the year.
The decline in construction output in Ireland is mirrored elsewhere with output falling by 7 per cent in the EU27 during the fourth quarter.
Estonia reported a 19.8 per cent drop in output while Spain recorded a 19.7 per cent fall. However, output in Romania rose 14.6 per cent while Slovakia saw a 14.2 per cent rise.
