Retail spending has stalled after 10 straight months of gains, with big falls in purchases of liquor, footwear and food.
Consumers shelled out a total $24.1 billion in April, which was flat in percentage terms from the amount spent in March, official figures out Thursday showed.
The data was the weakest reading since February 2014, and comes after 10 consecutive positive monthly results.
There were large falls in sales of liquor, footwear, specialised food retailing like bakeries and butchers, and recreational goods such as camping supplies.
Clothing, however, jumped 3.1 per cent in the month, while restaurants, cafes and catering was up 1.2 per cent.
The Australian dollar dropped half a US cent shortly after the Australian Bureau of Statistics released its downbeat snapshot of the retail sector.
ANZ economists Katie Hill and Felicity Emmett said the figures reflected sluggish household spending.
"While we expect the soft result reflects weaker consumer confidence in the month, there may also have been difficulty seasonally adjusting the number given that the Anzac Day public holiday fell on a Saturday in most states this year," the ANZ economists said.
They said it looked like the lower Aussie dollar, which has slipped against the greenback in recent weeks, had buoyed spending on clothes by prompting consumers to spend in-store rather than on websites owned by foreign retailers.
"Clothing was the standout in April ... which may reflect a redirection of online retail spending back to Australian retailers in response to the lower Australian dollar."
They tipped consumer spending to remain weak over the next few months, especially given "anaemic wages growth" being experienced across the country.
On a state-by-state basis, retail spending was strongest in the ACT, and also robust in Victoria. It was slightly higher in South Australia and the Northern Territory.
Spending at stores was flat in NSW, and fell in Western Australia, Queensland and Tasmania.
CommSec economist Savanth Sebastian said it was important to keep April's stagnant result in context.
"We've seen 10 consecutive months of strong activity and you're seeing now a bit of consolidation in the month of April," Mr Sebastian said.
He said the Reserve Bank would start to be concerned if it saw a couple of consecutive poor monthly readings.
"It certainly continues to leave to door open for a potential rate cut," he said.
Australian National Retailers Association chief executive Anna McPhee blamed consumer caution ahead of May's federal budget for the disappointing figures.
"Consumer confidence in April showed consumers felt uncertain about employment prospects, the economic outlook and were cautious about the May budget given the previous year," she said.
HOW AUSSIES SHOPPED IN APRIL
*Recreational goods down 4.0 pct
*Footwear and other personal accessories down 2.2 pct
*Liquor retailing down 2.2 pct
*Other specialised food retailing down 1.2 pct
*Clothing up 3.1 pct
*Cafes, restaurants and catering up 1.2 pct
(Source: ABS)
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