Australian shoppers are expected to spend a total of $44.5 billion in the leadup to Christmas, up more than four per cent on last year.
The National Retail Association's (NRA) says every state and territory is expected to enjoy a lift in Christmas spending with the country's most populous state, NSW, tipped to spend the most.
However, it is Victoria and the Northern Territory which are expected to have the biggest increases in spending.
NSW shoppers are forecast to spend $14.2 billion, a three per cent lift on last year, while Victoria and the NT are expected to enjoy eight per cent increases to $11.6 billion and $400 million, respectively.
Fashion accessories, kitchen appliances and home electronics will likely dominate as gifts under the Christmas tree, NRA chief executive Trevor Evans says.
"Department stores, recreational goods and personal services always see a big boost in the leadup to Christmas," he said.
"This year, we are expecting to see some other categories to also do well, including fashion accessories, and household goods such as appliances and electronics."
He said consumer confidence was recovering after being dented by global growth concerns, including the Chinese slowdown, and recent political instability in Canberra.
"All of that instability is washing out of the system bit by bit and, as a consequence, we are seeing confidence stabilise and consumer spending start to increase," he said.
AUSSIES TO SPLURGE A BIT MORE THIS CHRISTMAS:
*NSW to spend $14.2b, up 3pct
*Vic to spend $11.6b, up 8pct
*Qld to spend $9b, up 6pct
*WA to spend $5.3b, up 6pct
*SA to spend $2.9b, up 6pct
*Tas to spend $900m, up 5pct
*ACT to spend $800m, up 3pct
*NT to spend $400m, up 8pct
