Higher fuel costs and a slump in job growth has made people more hesitant about their spending plans.
Last week, employment fell while retail spending rose modestly, due to households spending more on on fuel.
Despite signs of a pick-up in the housing market led by Auckland, ANZ senior economist Mark Smith says spending is being determined by money in the pocket, not the wealth tied up in a person's home.
He says usually house prices and consumer spending are synchronised when they move, but currently there is more uncertainty in terms of the labour market outlook which means consumers are continuing to be more cautious about spending.
Mr Smith says the trend nationwide in terms of job creation has been flat.
He says the retail trade data for the third quarter is due out this week and is also likely to be flat.
Mr Smith says there is likely to be a weak outcome for the third quarter with marked sector differences.
He says there has been a good agricultural production season and construction, particularly from the residential sector, is also looking more positive.
