A Reserve Bank interest rate cut, cheaper fuel and a booming housing market - the stars were aligned for the retail sector in February.
Australians splashed $24.1 billion in February, up 0.7 per cent from January, the strongest growth in spending since September.
It also smashed economists' expectations of a 0.4 per cent rise.
The strong spending has been attributed to the RBA's February 3 rate cut, and speculation of further cuts in coming months.
The boost was mainly driven by a 1.8 per cent jump in household goods sales, which includes electronics, hardware and gardening products.
The booming housing market continued to work its magic, said Russell Zimmerman, executive director of the Australian Retailers Association.
"Whilst ever you've got a strong housing boom, you're going to see good figures coming out of the housing goods area," he said.
"We've also got lower petrol prices which is feeding into extra spending dollars for consumers."
St George economists also said spending on household items reflected a soaring property market.
"Greater turnover within the housing market is likely encouraging householders to improve their homes and spend more on new furnishings and appliances," they said.
The spending figures suggest consumer confidence is slowly but surely heading in the right direction, helped along by the prospect of further rate cuts from the RBA, Mr Zimmerman said.
All we need now is a good federal budget in May, he said.
Commonwealth Bank economist Gareth Aird said record low interest rates were lifting consumer spending and house price growth.
"Growth in house prices tends to induce a pickup in consumer spending," he said.
"Annual retail trade growth in NSW is highest across the states, which is unsurprising considering Sydney's booming property market."
The lower Australian dollar had also lent a helping hand to February's spending spree, driving a pickup in tourism, Mr Aird said.
HOW AUSSIES SHOPPED IN FEBRUARY
* Household goods up 1.8 pct
* Other retailing up 1.3 pct
* Food up 1.2 pct
* Clothing, footwear, personal accessories down 0.2 pct
* Cafes, restaurants, takeaway food down 0.4 pct
* Department store sales down 3.2 pct
Source: ABS, seasonally adjusted data
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