The latest data from Australian Bureau of Statistics (ABS) shows consumer spending during January 2025 at 37.08 billion, 3.8 per cent higher than January 2024.
The ‘other retailing’ category saw the most significant increase (up seven per cent year-on-year), while household goods rose 2.5 per cent.
Australian Retailers Association (ARA) chief industry affairs officer, Fleur Brown, says whilst spending has naturally settled back following the festive season, January’s figures are a positive contrast to spending patterns throughout the majority of 2024.
“We are continuing to see a mixed performance across retail categories,” she explains.
“Looking ahead, whilst these results are heartening, retail is far from out of the woods. Cost-of-living pressures remain acute and it is likely to remain a challenging year for retail.”
National Retail Association (NRA) interim CEO, Lindsay Carroll, adds that the data is a promising result for consumer sentiment, but business conditions remain tough.
“High rates of crime, the increased cost of doing business, the demand to stay competitive and the lack of sufficient support from governments have created a counterproductive environment for retailers,” she says.
“We are watching business insolvencies continue to rise despite the rate cut delivered by the Reserve Bank in February. Retailers need all sides of government prioritise these issues, so Australia’s second largest employer doesn’t fall through the cracks.”
