Australians are buying everyday goods at the slowest rate since the 1990-91 recession as signs grow that interest rate reductions and the Morrison government's tax cuts have failed to encourage shoppers to open their wallets.

As a key measure of the employment market pointed to a slowdown in job creation, Australian Bureau of Statistics retail sales data showed a lower-than-expected 0.2 per cent lift in the value of sales through September.

Retail sale volumes have fallen to their worst annual performance since the 1990-91 recession. Credit:Dominic Lorrimer

Analysts, the government and the Reserve Bank of Australia have been expecting a strong response to recent interest rate cuts, worth about $3 billion a month in extra household disposable income, and the rollout of $7.2 billion of tax cuts directed at low- and middle-income earners.

Instead, retail sales have flatlined, with the volume of sales falling 0.1 per cent in the September quarter. Volumes have now dropped 0.2 per cent over the past 12 months, the worst annual result since Australia's last recession.