Shoppers staying on the sidelines

Shopping bags. AFP Source: AFP

Retail trade of $20.2 billion dropped by a seasonally-adjusted  1.1 per cent in October, compared to the previous month, the Australian Bureau of Statistics said on Thursday.

This was the largest monthly drop since July 2009. Economists' forecasts had centred on a 0.4 per cent increase in October.

South Australian consumers were cautious, with sales down 0.2 per cent, but were more confident that the other states.

NT was the worst off with retail sales down by 4.9 per cent, followed by NSW with a slump of 1.8 per cent.

Queensland was next with a fall of 1.2 per cent, Victorian sales were down 0.8 per cent, ACT dipped by 0.6 per cent, Tasmania 0.5 per cent and WA by 0.3 per cent.

In figures released separately, the nation's trade position improved in October to a seasonally-adjusted surplus of $2.63 billion in October, compared to an upwardly-revised $1.81 billion in September.

Economists had expected a surplus of $2 billion in October.

Imports fell three per cent, while exports rose one per cent in the month. Shoppers went into hiding in October, and even before November's sharp rise in mortgage rates, new data released on Thursday suggests.