Australian retail spending rose 5 per cent in January compared with the same month last year. 

Australian Bureau of Statistics (ABS) data shows consumers continued to spend following the peak holiday trading period, although growth remains measured as households manage ongoing cost-of-living pressures.

Spending increased across all major retail categories, led by cafes, restaurants and takeaway food services, which rose 8.7 per cent year-on-year. Other retailing grew 7.8 per cent, while clothing, footwear and personal accessories retailing increased 6.1 per cent.

Household goods retailing recorded more moderate growth of 4.1 per cent, while department stores and large online retailers rose 3.7 per cent. Food retailing posted the slowest growth, increasing 2.8 per cent.

Growth was broadly consistent across the country. Western Australia recorded the strongest annual increase at 6.2 per cent, followed by Queensland (5.9 per cent), SA (5.1 per cent) and NSW (4.7 per cent).

“January retail spending shows Australian households continue to spend carefully, with steady growth across all categories following the peak trading season,” said Australian Retail Council chief economist Glenn Fahey. 

“Consumers remain highly price-sensitive and are continuing to prioritise value as they manage ongoing cost-of-living pressures.”

However, Fahey said the January figures were recorded before several recent developments that may influence consumer sentiment, including the Reserve Bank of Australia’s February interest rate increase and escalating geopolitical tensions in the Middle East.

“Retailers are dealing with rising costs across energy, logistics, wages, rents and regulation, all while working hard to keep prices affordable for Australian households,” he added. 

“It’s imperative that government policies back the retailers that back Australia,  supporting investment, productivity, and the ability for businesses to keep prices competitive for consumers.”