The Australian construction industry was reported increased in the second consecutive month in February but at a lower rate according to the Performance of Construction Index by the Australian Industry Group and the Housing Industry Association.

The AIG/HIA Performance of Construction Index was reported fell by 4.9 points to 52.8 in February. The slower pace of the expansion of the construction industry was mainly attributable to a drop in building flats, according to a survey. However, it was the second consecutive month the index was above the 50 levels and also showed the improvement in the construction sector since hitting a low 12 months ago.

"The house building sector, in particularly, experienced solid conditions, in line with official data showing a continued increase in approvals for detached houses," said Peter Burn, director of public policy, AIG.

According to the report released by AIG and HIA, the activity in house building, engineering and commercial construction sector saw an expansion at a slower rate in February, while apartment building sector activity was reported decreased during the month.

Also, new orders sub index was reported declined to 51.3 from 53.5, while the employment sub index decreased to 51.1 from 59.1 in January.