New figures released by the Australian Bureau of Statistics (ABS) show household spending on retail rose 5% year-on-year in January 2026, with Australians spending $38.63 billion, up from $36.79 billion in January 2025.
The result suggests consumer spending remains resilient following the peak retail trading period, with households continuing to spend cautiously amid ongoing cost-of-living pressures.
Growth was recorded across all major retail categories, led by cafes, restaurants and takeaway food services (up 8.7%), followed by other retailing (up 7.8%) and clothing, footwear and personal accessories (up 6.1%).
More moderate growth was recorded in household goods retailing (up 4.1%) and department stores and large online retailers (up 3.7%), reflecting ongoing pressure on household budgets.
Spending growth was broadly consistent across the country. Western Australia (up 6.2%) and Queensland (up 5.9%) recorded the strongest annual growth, followed by South Australia (up 5.1%) and New South Wales (up 4.7%).
Australian Retail Council Chief Economist Glenn Fahey said the data indicates households remain cautious but are still spending where budgets allow.
“January retail spending shows Australian households continue to spend carefully, with steady growth across all categories following the peak trading season,” Mr Fahey said.
“Consumers remain highly price-sensitive and are continuing to prioritise value as they manage ongoing cost-of-living pressures.”
Mr Fahey said it was important to note the January data predates several emerging economic developments that may affect consumer sentiment in the months ahead.
“These figures were recorded before the Reserve Bank’s February interest rate increase and before the recent escalation of geopolitical tensions in the Middle East,” Mr Fahey said. “If global instability leads to sustained increases in oil and energy prices, it could place further pressure on inflation and weigh on consumer confidence.”
