Companies are calling on the Morrison government to accelerate infrastructure spending across the country as signs grow the construction sector's woes are intensifying with firms holding back investment plans at recession-like levels.

The Australian Industry Group-Housing Industry Association's construction index, released on Monday, showed a fall of two points in September, marking its 13th consecutive drop.

Construction activity, as measured by the Australian Industry Group, has now fallen for 13 consecutive months. Credit:Louie Douvis

Overall industry activity and new orders are now deeply in negative territory and jobs in the sector, one of the nation's biggest employers, have fallen for the 14th consecutive month.

Engineering construction is now dropping at its fastest rate in more than six years with a weak uptake of new work now apparent. While energy costs remain elevated overall cost pressures including wages across the sector are moderate.