Growth in spending across the Australian economy in February was the slowest in two years, as car sales lifted but purchases in retail stores dipped, according to a Commonwealth Bank survey.
The latest Commonwealth Bank Business Sales Indicator shows that cautious spending patterns have returned, with spending Australia-wide growing by just 0.1 per cent in trend terms in February.
On an annual basis, sales grew by five per cent, down from 5.3 per cent in the 12 months to January and the slowest growth pace in five months.
The Business Sales Indicator, which tracks the value of credit and debit card transactions processes through Commonwealth Bank point-of-sales terminals, is a key monthly indicator of the state of the national and state economies.
"Whilst spending is rising more modestly, that was to be expected as the growth pace late last year was unsustainable," CommSec chief economist Craig James said in a statement.
"Looking ahead, consumer spending will be supported by low interest rates and the wealth effect of higher home prices.
"And business spending will be supported by the recent solid lifts in profits and high cash levels."
Eleven of 19 industry sectors included in the survey lifted sales in February.
Service providers made the strongest gains - up 1.4 per cent - and the automobile and vehicles sector lifted sales by 1.1 per cent.
In contrast, mail order and telephone order providers suffered a fall in sales of 0.9 per cent, business services fell 0.6 per cent, and retail stores fell 0.5 per cent.
Sales lifted in five states and territories in February.
Tasmania was the strongest, with sales growth of 1.1 per cent, followed by Victoria, with growth of 0.5 per cent.
Sales in NSW fell by 0.3 per cent, and spending was flat in Queensland.
In mid-2016, growth in spending slowed amid Brexit fears and uncertainties over elections in Australia and the United States.
That was followed by a lift of 0.7 to 0.8 per cent in trend terms between September and November, before easing over the past three months.
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