Retail spending has slowed for a second consecutive month, official figures have shown, as consumers tighten their purse strings amid low wages growth.
Retail spending has slowed for a second consecutive month, official figures have shown, as consumers tighten their purse strings amid low wages growth.
Seasonally adjusted retail spending fell 0.1 per cent to $25.63 billion in March, according to Australian Bureau of Statistics data on Tuesday.
The fall missed market expectations of a 0.3 per cent rise and follows February's 0.2 per cent drop.
"It does indicate a pretty cautious Australian consumer," AMP Capital’s Shane Oliver told AAP.
"The figures are consistent with the weakness we have seen in wages growth and the wearing off from the boost in interest rate cuts."
While the Reserve Bank of Australia has kept the official cash rate steady at 1.50 per cent since August, the banks have lifted interest rates in recent months to offset rising borrowing costs.
Dr Oliver said the retail figures followed soft March quarter international trade figures, which did not bode well for the nation's economic growth.
"It all paints a soft picture for March quarter GDP (gross domestic product) growth," he said.
"We will need to see decent growth in business investment, public spending and housing construction to see the quarter hold up."
The Australian dollar fell from US73.97 cents just before the retail figures were released at 1130 AEST to US73.66 cents shortly afterward.
The data showed that cafes, restaurants and fast food sales fell 0.5 per cent in March, food retailing also dropped 0.5 per cent, department store sales declined 0.6 per cent and household goods slipped 0.1 per cent.
These falls were partially offset by rises in other retailing (1.1 per cent) and clothing, footwear and accessories, which gained 0.4 per cent.
