Retail spending in Australia has risen for a third straight month and is slightly higher than market expectations, official figures show.
Spending rose 0.3 per cent in June to $26.15 billion, according to seasonally adjusted data from the Australian Bureau of Statistics.
The increase surpassed market expectations of a 0.2 per cent lift and follows a 0.6 per cent lift in May and a 1.0 per cent jump in April.
Household goods retailing rose 0.9 per cent while clothing, footwear and personal accessory sales rose 0.8.
Customers also spent more on eating out with cafes, restaurants and takeaway food retailers recording a 0.5 per cent increase, but department store sales fell 0.3 per cent.
ANZ economist Jo Masters said retail sales volumes were up 1.5 per cent in the second quarter, the fastest pace since the first quarter of 2013.
However, she said retail prices remained weak, having declined 0.1 per cent in the second quarter.
"International competition continues to weigh on retail prices," Ms Masters said.
"The only category to record higher prices was cafes, restaurants and takeaway food."
JP Morgan economist Ben Jarman said discounting, which was particularly intense in clothing and footwear, was behind the strong lift in sales volumes.
IG chief market strategist Chris Weston said the Australian dollar had received a slight boost from the retail numbers but it was already well supported due to further US dollar weakness.
"There was bit of a wobble ahead of the retail trade announcement but after people dissected the numbers they realised it was pretty good," he said.
At 1455 AEST, the currency was trading at 79.62 US cents, up on Thursday's 79.28 US cents.
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