Retail trade climbed by a moderate 0.2 per cent in May to $20.16 billion, coinciding with the last of six interest rate increases by the Reserve Bank of Australia since October, according to Australian Bureau of Statistics data released today.

Spending was in line with economists' expectations that shoppers have become more prudent amid soaring interest rates and slumping consumer confidence.

Meanwhile, building approvals experienced a second monthly slide in a row, falling by 6.6 per cent in May to 13,412 units after an 11.4 per cent drop in April.

The slump in approvals follows the slack down in demand for home loans since late 2009.

Economists have predicted expansion levels in building approvals to have been flat in May.

The public expects the Reserve Bank to hold the cash rate at 4.5 per cent for a second straight month at next Tuesday's board meeting.