Retail sales continue to slow as consumers spend within their means.
MasterCard's latest Spending Pulse report shows retail sales fell 0.1 per cent in April but grew by 2.8 per cent year-on-year, seasonally adjusted.
MasterCard Advisors senior vice president Sarah Quinlan said the figures show Australian consumers are still spending.
"Retail spending is half of what it was a year ago, so we're on a declining growth rate, but it's still a positive growth rate," Ms Quinlan told AAP.
Most categories of retail spending were down or flat in the month, according to the survey.
However, Ms Quinlan pointed out that household consumer goods sales rose 2.4 per cent, clothing sales grew 0.4 per cent and department store sales were up 1.1 per cent.
"That's showing that people are using some of their discretionary disposable income to purchase something they don't have to be purchasing," she said.
"That shows that they feel some confidence."
Ms Quinlan said the weak retail sales growth was due to consumers' views of their own personal finances, especially amid extremely soft wage growth, and their prudent behaviour since global financial crisis.
"People have learned to spend within their means," Ms Quinlan said.
"When you see there's been a big shift in your personal financial circumstances you immediately adjust your spending."
She tipped retail spending to continue to be modest in lead up to the federal election.
However, she warned any negative indicators of growth out of China could spook Australian consumers, causing a further pull-back in retail spending.
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