Building approvals have decreased, according to the latest figures.
Interest rate rises from last year are still affecting the construction industry, it has been said.
According to the Australian Associated Press, last year's cash rate increases by the Reserve Bank of Australia (RBA) - which included a surge of 0.25 per cent in November - have played a part in building approvals dropping.
Figures from the Australian Bureau of Statistics show a 7.4 per cent fall in February, while in January approvals were down 21.8 per cent.
However, ICAP senior economist Adam Carr said these results were due to the floods in Queensland and Victoria - and he added: "The February numbers are still being primarily driven by Victoria and Queensland and that's obviously flood induced, so just dismiss it - it doesn't mean anything."
Following the November rise by the RBA - which took the cash rate to 4.75 per cent - the Commonwealth Bank opted to up the interest rate on its home loans and savings accounts.
By Emma North
