Despite cost-of-living pressures, Australia?s consumers are still spending, with the latest figures from the ABS showing retail sales up 1.3% per cent in July.
It?s the strongest result we?ve seen in four months with department stores leading the charge with a rise of 3.8 per cent.
Clothing, restaurant and cafes all saw solid gains in the month, which no doubt brought a sigh of relief for business owners after a slow down in momentum in the past two months.
Retail sales were strongest in WA, Victoria and the ACT reflecting both the surge in labour income this year as well as the still-high household savings rate.
But with analysts predicting the RBA to hike rates by another 50 points next month, the July rise in retail spend may be short lived.