The retail sector contracted in March for the third month in a row as consumers appeared to shrug off discounts, an industry index suggests.
Sales, new orders and employment in the retail sector contracted last month, according to the Ai Group's Performance of Services Index released on Wednesday.
"Some businesses reported... that a further fall in selling prices still wasn't enough to stimulate stronger turnover for this consumer-oriented segment," the Ai Group report stated.
Activity shrank in March in all four of the index's consumer-oriented sectors as the "health and community" and "personal, recreational and others" services joined the previously contracting categories of retail - which includes online sales - and hospitality.
"Businesses will be hoping the boost to household incomes announced in last night's federal budget will translate into higher sales and help fuel a recovery of the confidence that has sagged over recent months," Ai Group chief executive Innes Willox said.
Official Australian Bureau of Statistics data out Wednesday showed retail spending rose 0.8 per cent in February, beating market expectations of a 0.3 per cent rise.
