Consumer confidence has suffered its first setback in three weeks, sparked by concerns about household finances.
The ANZ/Roy Morgan weekly consumer confidence index fell one per cent to 112.5 points in the first week of October.
However, the index has been broadly steady for eight consecutive weeks, sitting around its long-run average.
ANZ chief economist Warren Hogan remains confident that consumer sentiment is bouncing back, which will help boost spending.
"Stable consumer confidence, combined with a lower Australian dollar and a gradual strengthening in labour demand, as indicated by yesterday's September ANZ job ads, should provide some support to retail sales in coming months.
"However, continuing consumer caution and soft income growth will remain headwinds to the household sector."
Mr Hogan said the relatively modest growth in consumer spending should keep the Reserve Bank of Australia's cash rate unchanged until the second quarter of 2015.
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