than expected but ASB economist Christina Leung said it did not change her view on growth and interest rate outlooks.
Despite some signs of slowing in Auckland and Canterbury, ASB expected further growth in house building demand, albeit at a more modest pace than seen over the first half of the year.
The improvement in demand for commercial buildings was also encouraging, she said.
Statistics New Zealand figures showed the number of seasonally adjusted consents was flat for August this year, the same reading as in July, which recorded a 1.7% drop from the previous month.
Excluding apartments, which could be volatile, consents dropped 1.6% to a seasonally adjusted 1794 in August, following a 2.3% drop in July.
Auckland, New Zealand's largest city where a housing shortage is pushing up prices, made up a third of dwelling consents in August.
The number of consents, on an unadjusted basis, fell 23% in the month to 656. On a yearly basis, consents were 30% higher than in August 2013, of which three-quarters were apartment consents.
The pace of consents slowed in Canterbury for a second consecutive month.
In Christchurch, being rebuilt after the 2010 and 2011 earthquakes, consents slipped 17% to 540 in August, extending a fall from a high of 623 in June.
Canterbury consents were still 16% ahead of August last year.
Combined Auckland and Canterbury consents accounted for 59% of New Zealand's building activity.
Otago consents fell to 92 in August from 132 in July and 110 in August last year. The value of Otago consents fell to $34 million in August from $45 million in July and $37 million in August last year.
In Wellington, consents were almost unchanged from July at 118 from 119, and compared with 113 in July last year.
Excluding seasonal adjustments, the number of residential consents for new dwellings in August fell 11% to 2022 from the previous month and were 16% higher than August last year.
The value of all building consents issued in the month was $1.2 billion, Statistics NZ said.
Ms Leung expected further growth in non-residential construction in the coming year given increasing business confidence towards investment and increasing tightness in the office market.
