Household spending on clothing and footwear is down month-on-month in April, which added to a total monthly household spending slip of 1.1 per cent.
This is according to seasonally adjusted figures released by the Australian Bureau of Statistics (ABS), which also shows fashion was one of the strongest spending growth categories in year-on-year terms.
The total monthly household spending slip in April follows a 1.6 per cent rise in March, and a rise of 0.3 per cent in February.
Transport drove the total spending slip MoM, with spending in the category plunging by 4.7 per cent. That followed a 5.4 per cent monthly lift in March.
Fashion spending dropped by 2.2 per cent in April, following a 0.9 per cent lift in March.
Clothing and footwear spending was down in all states and territories except for Western Australia, with that state recording a 0.9 per cent lift in April.
New South Wales and Victoria recorded the strongest monthly dips in fashion spending, down 3 per cent and 3.2 per cent respectively. South Australia came third, down 2.2 per cent, with Queensland, Tasmania and the Northern Territory recording slips of just over 1 per cent.
In year-on-year terms, fashion spending grew by 7.4 per cent between April 2025 and April 2026, just behind other retailing (up 8 per cent), and ahead of household goods retailing (6.5 per cent), department stores and large online retailers (6.1 per cent), cafes, restaurants and takeaway food services (up 5.7 per cent) and food retailing (up 2.4 per cent).
Total spending year-on-year was up 5.1 per cent, with Australians spending $39.07 billion across the total retail sector.
The Australian Retail Council (ARC) chief economist Glenn Fahey said the overall 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,” 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.
Western Australia recorded the strongest annual retail spending growth among the major states at 6.3 per cent YoY, 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.
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,” the chief economist 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.”
Monthly spending fall points to wider challenges ahead
The strong fall in transport spending month-on-month reflected widespread impacts and responses to the conflict in the Middle East, the ABS pointed out. Air transport was the largest contributor to the decline, as households scaled back travel in response to broader uncertainties and higher airfares.
Higher jet fuel costs also added to the fall in transport spending, as airlines cancelled routes during the month to keep services viable. The resulting refunds are recorded as a reduction in air transport.
Fuel spending remained elevated compared to before the Middle East conflict, but eased in comparison to March. This was supported by the Federal Government halving the fuel excise duty in response to rising fuel prices, which took place from April 1.
Experimental data produced by the ABS suggests that the volume of fuel spending increased by 2.0 per cent in April, following a 1.5 per cent fall in March.
“The fuel excise discount provided some immediate relief to household budgets. We also saw spending on public transport ease in states offering free travel, particularly Victoria and Tasmania,” ABS head of business statistics Tom Lay said.
A rise in new vehicle sales provided a partial offset to the broader transport decline. Electric vehicle (EV) sales, which have been trending higher over the last year, increased significantly in April as EVs accounted for a growing share of overall new vehicles sales. This points to a shift in consumer behaviour as households adjust for rising fuel prices.
“Food spending also fell by 1.3 per cent, reflecting a return to normal levels after the higher purchases we saw in March. The shift towards generic brands and cheaper products in supermarkets continued into April, reflecting ongoing price consciousness among households,” Lay said.