Australian retail spending up 5.7% to $39.3b

Spending rose across all states and territories.

Australian household retail spending increased 5.7% over the year to March, reaching $39.3b, up from $37.2b in March 2025, according to the Australian Bureau of Statistics (ABS).

Spending growth was led by other retailing, which increased 10.1%, followed by cafes, restaurants and takeaway food services at 7.2%, and clothing and footwear at 6.3%.

“Whilst spending is up 5.7% over the year, this is partly due to of that increase reflects higher costs and pockets of category strength, rather than a broad lift in underlying demand,” Australian Retail Council (ARC) Chief Economist Glenn Fahey said.

He added that consumer activity remains relatively resilient, particularly in discretionary spending categories, despite ongoing economic uncertainty.

Spending rose across all states and territories, with Queensland (+6.9%) and Western Australia (+6.8%) recording the strongest growth. New South Wales (+4.9%) and Victoria (+4.8%) posted more modest gains.

Fahey also warned that the latest March data does not yet fully reflect recent global developments, including tensions in the Middle East, which may have further economic implications.

“Unfortunately, consumer confidence remains near historic lows, and the increase in fuel, freight and energy costs is continuing to place pressure on both households and businesses,” he said. “Businesses are also carrying higher wages and higher costs of products and services.

“Those pressures are likely to weigh more heavily on spending in the months ahead," Fahey said.