New data from the Australian Bureau of Statistics shows that fashion spending grew the largest in October 2025 compared to the month prior, up 3.5 per cent.
This added to a 1.3 per cent overall surge in total household spending month-on-month, which the ABS call the biggest monthly increase since January 2024.
In year-on-year terms, overall household spending grew 5.6 per cent between October 2024 and October 2025.
“Discretionary spending surged this month led by goods as promotional events saw households spend more on clothing, footwear, furnishings and electronics following months of weaker spending in these categories,” ABS head of business statistics Tom Lay said.
“Services spending also rose in October, as major concerts and cultural festivals drove up demand for catering, hospitality and hotel stays in major cities.”
All nine spending categories rose in October, month-on-month. Clothing and footwear spending was ahead of furnishings and household equipment (up 3 per cent) and hotels, cafes and restaurants (up 2.2 per cent).
In year-on-year terms, cafes, restaurants and takeaway food services led the charge, with spending up 8.3 per cent. This is followed by other retailing (beauty, hairdressers, etc) with a lift of 7.3 per cent, and a 6.8 per cent yearly lift in household goods.
Department stores and large online retailers saw sales growth of 6.7 per cent, with clothing, footwear and accessories up 5.6 per cent. Food retailing saw the lowest percentage growth year-on-year, up 3.6 per cent.
Seasonally adjusted retail spending for October hit $78.4 billion,
The Australian Retailers Association (ARA) CEO Chris Rodwell said the results reflect retail’s steadily strengthening performance, after a long period of subdued spending.
“This is a robust result in what remains a challenging retail landscape,” he said. “It reflects the steady growth that has characterised this year. October spending likely reflects a trend towards early Christmas shopping as households look to balance their budgets through the peak season period.
“ARA-Roy Morgan data predicted that more than half (51 per cent) of gift buyers already made purchases by mid-October.”
But Rodwell was quick to caution that underlying conditions remain sensitive, as shoppers respond to mixed economic signals such as elevated interest rates. Even so, he said, “it’s pleasing to see such resilience which demonstrates that retailers are steadily returning to growth despite the challenges.”
With the peak trading season well underway, Rodwell said the next few weeks are crucial for many retailers.
“Christmas trading is make-or-break for many retailers in discretionary categories,” he said. “A solid October gives retailers the confidence to plan, roster and stock appropriately, but every week from here counts. Retailers are working extremely hard to deliver value and service, and consumers are responding.”
Rodwell also encouraged Australians to support local retailers this Christmas. He said local retailers invest in Australian jobs and communities.
“We continue to urge shoppers to get behind the businesses that contribute to our economy, particularly as ultra-cheap offshore platforms grow market share without meeting the same regulatory, governance or employment obligations.”
Across the states and territories, all but Tasmania recorded an increase in spending month-on-month in October. New South Wales recorded the highest lift, up 1.6 per cent, followed by Queensland and the Australian Capital Territory (both up 1.5 per cent), Victoria and Western Australia (both up 1.1 per cent), South Australia (up 0.9 per cent) and the Northern Territory (up 0.6 per cent).
Clothing and footwear sales drove the lift in Queensland and Victoria, with the category spending in each state up 4.6 per cent and 3.5 per cent respectively. New South Wales and the Australian Capital Territory also benefitted from fashion spending, with lifts of 3.7 per cent and 3.4 per cent respectively.