Shoppers splash on clothes but skimp on hospitality

OCTOBER retail spending has beaten market expectations, with a 0.3 per cent rise driven by cash dropped on clothing, footwear and personal accessories.

Seasonally-adjusted retail spending was $26.99 billion, up from $26.89 billion in September, according to Australian Bureau of Statistics data released on Thursday.

The result was better than the 0.1 per cent rise expected, with the Australian dollar dipping and diving after the data release.

The figures are a positive note following Wednesday’s flatter-than-expected GDP data, where falling house prices, tighter lending standards and resolutely sluggish wages were credited for a weaker-than-expected 0.3 per cent economic growth figure for the September quarter.

Thursday’s retail figures showed a 0.6 per cent rise in household goods spending, a 0.2 per cent jump for food retailing, and a 0.4 per cent lift for department stores, but spending in cafes, restaurants and takeaway food services fell 0.9 per cent.

Newspaper and book retailing was down 2.8 per cent.

All states except NSW saw a retail lift, with the ABS attributing the state’s 0.4 per cent spending drop to poor weather.