The slowdown in home building has worsened with the value of work carried out in the June quarter falling by 7.3% compared with three months earlier.
Statistics New Zealand says the seasonally adjusted figure is the third consecutive quarterly decline. Activity is now at its lowest point since the end of 2002.
Commercial work decreased for a second consecutive quarter, falling a further 3.6%.
The figure are worse than expected - especially in the non-residential sector.