Spending dropped 1.7 percent in the 17-member eurozone month to month and 1.1 percent in the 27-member European Union.
The figures show an accelerated decline in construction outlays. From January to February, construction slipped 0.3 percent in the eurozone and broke even in the EU, the data agency said issuing revised estimates.
Construction spending has also tumbled from a year earlier. Compared to March 2012, spending fell 7.9 percent in the eurozone and 7.2 percent in the EU.
On an annual basis, construction outlays fell furthest in Portugal, the Czech Republic and Slovakia with spending off 10.7 percent, 7.6 percent and 5 percent, respectively.
Spending on construction rose the furthest in Romania and Spain, up 2.8 percent and 2.4 percent, respectively.
In Germany, home to Europe's largest economy, construction outlays dropped 3.1 percent month to month, falling for the second consecutive month. In France, outlays dropped 0.7 percent after climbing 2 percent January to February.