The ACT retail sector has recorded a small boost in profitability on the back of a larger than expected 0.7 per cent growth in national turnover during June.
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According to the Australian Bureau of Statistics, retail turnover in the territory increased by 0.2 per cent in seasonally adjusted terms, which comes after a one percent increase in May and a 0.9 per cent bump in April.
Nationally, the increase was the largest since February and brought the year-on-year growth rate to 4.7 per cent.
Retail Council chief executive Anna McPhee said the ACT now had the strongest annual growth rate in Australia at 7.4 per cent, thanks to a few months of positive growth.
"Today's results provide a positive indication that if the pace of growth continues throughout the second half of the year, the retail sector's long-term annual average growth rate of six per cent might be within reach," she said.
Ms McPhee said a strong housing market across Australia drove strong results for the household goods sector, which was the largest contributor to the June increase with a 2.2 per cent increase.
"Discretionary retail's year-on-year performance is largely being buoyed by the strength of the household goods category and assisting discretionary retail to continue to outpace food categories – up 6.4 per cent compared to 3.7 per cent.
Other retailing, which covers everything from pharmaceuticals and cosmetics to magazines and books, was ahead 2 per cent for the month.
The value of turnover in clothing, shoes and accessories, however, dropped 1.4 per cent, although this is expected to have recovered in July as consumers wrapped up against the cold.
Spending at supermarkets dropped 0.4 per cent, while specialised food retailing climbed 1.8 per cent, seasonally-adjusted.
Turnover climbed 1.1 per cent at cafes, restaurants and catering services; spending on takeaway food was up 1.5 per cent.
On Monday, National Australia Bank's chief economist Alan Oster said Australians spent close to $17.3 billion in online retail in the year to June 2015.
"This level is equivalent to 7.1 per cent of spending at traditional bricks & mortar retailers as measured by the Australian Bureau of Statistics," he said.
"We estimate that online sales are now 10 per cent higher compared to a year ago."
Ms McPhee said the federal budget announcements and the Reserve Bank of Australia's decision to lower the official cash rate were likely to have encouraged the lift in spending.
Commonwealth Bank of Australia economist Michael Blythe said the June outcome was a "step up from the relatively lacklustre pace of retail spending in recent months".
- with Mark Mulligan
