Today's survey shows that the sector is in the worst position since the index began eight years ago.
The Purchasing Managers' Index last month was at its lowest level since June 2000, standing at 34.4. This was down from a figure of 36.6 in March. The index has now signalled contraction in each month since June 2007.
Housing remained the worst performing sector, according to Ulster Bank, the worst of the three construction areas in April. Commercial activity fell at the sharpest pace since May 2003 while the decrease in civil engineering was the strongest for over four and a half years.
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A record decline in new orders has been contributed to falling demand in the market for housing. A slowing-down in the economy and increased competition has also been blamed for the fall.
This had a direct impact on employment levels, with the survey suggesting contraction being at a record pace last month.
Metal and fuel costs rose sharply in April, with firms reporting much higher general input prices. According to Ulster Bank construction firms have remained negative regarding the outlook for the year ahead.
They were pessimistic overall for the third time in five months, with negative expectations blamed on shortages of new work for tender, worsening economic conditions and the strength of the euro.
Ulster Bank's chief economist Pat McArdle said today's figures reflect the view that house completions will remain low next year: "Though it remains the case that the faster the contraction in output, the sooner the eventual turnaround, respondents were more pessimistic regarding the future, expecting that activity in a year's time will be slightly below current levels."
(PR/JM)
