Retail spending has risen for the 10th consecutive month as the sector continues a steady recovery, helped by low interest rates.

Spending rose 0.2 per cent in February to $22.97 billion, the Australian Bureau of Statistics said, in line with market expectations.

That followed a strong 1.2 per cent gain in retail trade in January, and rises of 0.7 per cent in both December and November.

Lower interest rates and rising household wealth were helping to boost spending, St George chief economist Besa Deda said.

“The recent pullback in consumer confidence might temper the strength in retail spending in coming months, but it is unlikely to derail it,” she said.

“Retail spending growth should continue to help the economy gradually recover this year, keeping the prospect of a rate hike later this year intact.”

Ms Deda said strong momentum in the housing market was starting to flow over to retail spending.

“It underscores the important multiplier effects housing has on the rest of the economy,” she said.

“Household goods retailing is heavily influenced by the performance of the housing market.”

Sales of household goods rose by 2.0 per cent in February, making it the strongest retail sector, and taking its growth in two months to 3.8 per cent.

“It is the strongest back-to-back gain in five years,” Ms Deda said.

JP Morgan economist Ben Jarman said consumer spending was stronger than at the same time in 2013, but he doesn’t expect that to last.

“The labour market remains pretty soggy,” he said.

“It’s hard to see the consumer accelerating from here until those market conditions change.”

Australian National Retailers Association chief executive Margy Osmond said her members were pleased with the continued growth in consumer spending.

“While today’s figures are pleasing for the sector, retailers remain wary not to break out the champagne just yet,” she said.

“We’re hopeful the upcoming federal budget doesn’t produce too many surprises that will spook consumer confidence and disturb this momentum.”