The Australian Retail Council (ARC) says the latest Australian Bureau of Statistics (ABS) Household Spending Indicator figures show retail spending remained resilient in April, although inflation and ongoing cost pressures continue to weigh on households and retailers.
Australian household spending on retail rose 5.1 per cent year-on-year in April 2026, with Australians spending $39.07 billion across the retail sector, up from $37.18 billion at the same time last year.
ARC Chief Economist Glenn Fahey said the figures showed households continue to spend amidst ongoing economic pressure and higher interest rates.
“Retail spending remained resilient in annual terms in April, although year-on-year growth eased slightly from the stronger March result,” Mr Fahey said.
“While spending remains higher than a year ago, much of that growth continues to reflect inflation rather than a significant increase in the volume of goods being purchased. Retailers are also continuing to navigate increased costs of doing business.
“With inflation still elevated, the growth in underlying retail volumes remains relatively modest despite the stronger topline spending figures.”
Easter and school holiday spending would also have supported retail activity during April, with uncertainty around international travel and fuel costs also contributing to some redirected domestic spending during the holiday period.
The strongest year-on-year retail spending growth categories included:
• Other retailing: +8.0 per cent
• Clothing, footwear and personal accessory retailing: +7.4 per cent
• Household goods retailing: +6.5 per cent
Department stores and large online retailers increased 6.1 per cent year-on-year, while cafes, restaurants and takeaway food services rose 5.7 per cent. Food retailing increased 2.4 per cent over the year.
Western Australia recorded the strongest annual retail spending growth among the major states at 6.3 per cent, followed by South Australia at 5.81 per cent and Queensland at 5.3 per cent, while Victoria recorded the softest growth at 3.9 per cent.
Mr Fahey said the outlook for the second half of the year remains uncertain as inflation pressures continue to weigh on both households and retailers.
“While spending growth has remained, underlying retail conditions including consumer confidence is fragile,” Mr Fahey said.
“Recent ABS business conditions data showed around half of retailers experienced reduced revenue over the previous month, while two in five expect conditions to weaken further over the next four weeks.
“Inflation remains persistent across the economy and retailers are continuing to face rising costs across wages, freight, supply chains and day-to-day operations.
“If inflation remains elevated through the second half of the year, it is likely to place significant pressure on household spending and retail trading conditions.”
ABS Household Spending Indicator – April 2026, year-on-year change
- Food retailing: +2.4%
- Household goods retailing: +6.5%
- Clothing, footwear and personal accessory retailing: +7.4%
- Department stores and large online retailers: +6.1%
- Cafes, restaurants and takeaway food services: +5.7%
- Other retailing: +8.0%
Total: 5.1%
By state and territory:
- NSW: +5.2%
- VIC: +3.9%
- QLD: +5.3%
- SA: +5.8%
- WA: +6.3%
- TAS: +5.2%
- NT: +7.5%
- ACT: +3.6%
Total: 5.1%