Australian retail spending rises 5.8% in May, all categories grow

All retail categories recorded annual sales growth in May, according to data from the Australian Bureau of Statistics. Total spending rose 5.8% year-on-year to $39.67 billion.

Growth was broad-based across every state and territory. The Northern Territory led with an 8.1% increase, followed by Western Australia at 7.3%. New South Wales and Victoria posted gains of 5.3% and 5.1%, respectively.

Australian Retail Council Chief Economist Glenn Fahey said the figures showed consumer spending remained resilient amid ongoing cost-of-living pressures and subdued confidence. "May was a solid result and shows the retail sector is proving resilient," he said.

The data contrasts with persistent headwinds including high inflation and rising interest rates, which have weighed on household budgets. The across-the-board growth suggests consumers are still willing to spend across discretionary and essential categories.

Analysts noted that the uniform expansion across all retail segments and regions indicates a broad-based recovery, though the sustainability of the trend remains uncertain given the economic outlook.