Shoppers stayed at home in August according to Australian Bureau of Statistics retail data released on Wednesday that showed turnover in the sector rose a paltry 0.1 per cent in the month, falling well short of market expectations.

Market forecasters had predicted a 0.4 per cent increase in sales, the same as the July reading.

Shoppers in Sydney's Pitt Street Mall. Credit:Edwina Pickles

The Australian dollar dropped under US87¢ after the release of the weaker-than-expected figures.

At 12.20pm AEST the currency was trading at US86.77¢, down from US87.18¢ just before the data's release at 11.30am.