Activity in the country's construction sector contracted in October for the 41th straight month, as new orders fell.
The construction index dropped to 42.3 last month from 44.5 in September, according to the latest Ulster Bank Construction Purchasing Managers index. A reading below 50 indicates contraction.
October's reading was the lowest since May as companies cut jobs in the face of shrinking demand. The sharpest fall during the month was in civil engineering sector with the rate of contraction accelerating at the fastest rate since December.
However, the rate of decline in residential activity moderated to the weakest level some four years.
Expectations on future activity dropped to the weakest in ten months, as fears mounted about the possible effects of the upcoming budget on spending.
Ulster Bank economist Lynsey Clemenger said: "The upcoming cuts in Government spending are a concern in terms of what this will mean for activity in the industry in the coming year. It is against this backdrop that confidence in the construction sector in now at its lowest level so far this year," said said.