It is the first time in more than the three years that the industry has posted a negative score in the quarterly output figures.
During quarter two, construction output grew 1.4%. However, the shrink in output during the July-to-September period has reversed the growth seen in the previous three quarters.
Construction currently accounts for around 5.9% of UK GDP.
Overall, UK GDP is estimated to have increased by 0.5% in quarter three of 2015 compared with growth of 0.7% in the previous three months. Manufacturing fell by 0.3% but there was a 2.4% increase in mining and quarrying and a 1.2% increase in water and waste management.