Australian household spending on retail increased 5.7 per cent over the year to March, with Australians spending $39.3 billion, up from $37.2 billion in March 2025 as retailers navigate rising cost pressures.
New data from the Australian Bureau of Statistics (ABS) shows spending rose across all retail categories, led by other retailing (+10.1 per cent), cafes, restaurants and takeaway food services (+7.2 per cent) and clothing and footwear (+6.3 per cent).
Australian Retail Council (ARC) Chief Economist Glenn Fahey said the underlying drivers of spending and cost pressures are important context.
“While spending is up 5.7 per cent 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,” Mr Fahey said.
“Despite the uncertain outlook, it is encouraging to see some resilience in consumer retail spending, in particular in discretionary categories.”
Spending increased across all states and territories, with Queensland (+6.9%) and Western Australia (+6.8%) recording the strongest growth, while New South Wales (+4.9%) and Victoria (+4.8%) saw more moderate increases.
Mr Fahey said the March data does not fully capture the protracted impacts of recent developments in the Middle East in particular.
“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.”
ABS Household Spending Indicator – March 2026, year-on-year change
- Food retailing: +3.68%
- Household goods retailing: +4.57%
- Clothing, footwear and personal accessory retailing: +6.34%
- Department stores and large online retailers: +4.75%
- Cafes, restaurants and takeaway food services: +7.24%
- Other retailing: +10.07%
Total: +5.7%
By state and territory
- NSW: +4.90%
- VIC: +4.82%
- QLD: +6.89%
- SA: +5.98%
- WA: +7.43%
- TAS: +5.74%
- NT: +6.21%
- ACT: +3.05%
Total: +5.7%