Easter boost for spending in March

Spending by consumers rose in March, but that may have been clouded by the lead up to Easter, says the Commonwealth Bank.

The Commonwealth Bank says spending rose in March, but that may have been clouded by Easter. (AAP)

Economy-wide spending recorded its strongest growth in 15 months in the lead up to Easter, but Commonwealth Bank says there's several factors that could slow spending in the coming months.

The Commonwealth Bank's Business Sales Indicator rose 0.6 per cent in trend terms in March, above the long-term average monthly rate of 0.2 per cent, and strongest monthly increase since December 2015.

The BSI measures the value of credit and debit card transactions processed through the bank's merchant facilities.

CommSec chief economist Craig James said the latest improvement is encouraging, but increased spending ahead of Easter may have played a part.

"A clearer picture of economy-wide spending should emerge over the next couple of months," he said.

"Looking ahead, low interest rates and the wealth effect of rising home prices should support spending. But modest wage growth and uncertainty about the federal budget will serve as a brake on sales."

Spending rose across 17 of 19 industry sectors in March, led by a 1.9 per cent rise in spending on service providers, while spending on government services was up 1.4 per cent.

Business service spending slipped by 0.7 per cent and retail spending fell 0.3 per cent.

Victoria recording the strongest rise in spending of 2.2 per cent, and the ACT was the only state or territory to not record a rise, with spending steady.