Rising house prices and the release of new smartphones have tempted Australians out of spending hibernation.
Shoppers spent $23.6 billion in September, a solid 1.2 per cent rise from August, figures from the Australian Bureau of Statistics (ABS) show.
In trend terms, Australian turnover rose five per cent in September 2014 compared with September 2013.
It was the strongest increase in retail spending since February 2013, beating market expectations and showing a lift across the whole sector.
The ABS reported an increase in the electrical and electronic goods retailing category, driven by the release of the Apple iPhone 6 during the month.
The figures also showed strong growth in household goods retailing, which rose by 4.1 per cent.
Cafes, restaurants, and takeaway food services rose by 2.0 per cent; followed by department stores, 1.3 per cent; while food retailing and clothing, footwear and personal accessory retailing, both experienced increases of 0.4 per cent.
Other retailing fell slightly, down 0.2 per cent.
NSW was the strongest performing state, with growth of 1.7 per cent for the month; followed by Victoria, 1.3 per cent; Western Australia, 1.3 per cent; Queensland, 0.4 per cent; South Australia, 1.2 per cent; the ACT, 1.9 per cent; and Tasmania, 0.8 per cent.
Only the Northern Territory experienced a fall, recording a decline a 0.6 per cent.
National Retail Association CEO, Trevor Evans, said the figures were a good sign for the upcoming Christmas period.
“We’re clearly headed into the most important trading period in the year for retailers,” Evans said.
“What happens in the coming months will determine the success or otherwise of the entire year ahead for many retailers.
“Strong spending means strong performance by Australian businesses and that means more jobs for locals. That’s why this positive growth trend is so welcome.”
Russell Zimmerman, executive director of the Australian Retailers Association, said September’s results are a positive sign and retailers are remaining hopefully that December year on year sales will achieve six per cent growth.
“Pre-Christmas sales are almost upon us and it is now imperative that the Federal Government and RBA do all that they can to ensure that retail trade is fully supported. The festive season is an extremely important time for retailers to make up for what has been a tough year in business,” Zimmerman said.
