The iPhone X and Black Friday sales drove a stronger-than-expected jump in retail spending in November but economists doubt consumers will continue to spend so freely.
Retail sales rose 1.2 per cent to $26.4 billion in November, seasonally adjusted, beating the 0.4 per cent rise economists had predicted.
It is the third consecutive month of growth following a rise of 0.5 per cent in October and 0.2 per cent in September.
Most categories of the retail sector, with the exception of department stores and supermarkets, enjoyed stronger sales, and the spending was evident in every state and territory.
Sales of electrical and electronic goods soared 9.3 per cent in November, following the release of Apple's latest iPhone, while the 'other retailing' category, which includes non-store sales, rose 3.9 per cent.
Department store sales dropped 1.1 per cent, a weak lead-in to the Christmas period, and in line with Myer's recent announcement that its sales continued to fall in November and slumped further in early December.
AMP Capital senior economist Diana Mousina said retail sales growth of 2.9 per cent for the year to November is better than recent periods, but is below the 6.1 per cent average growth rate of the prior decade.
"There has been a clear downtrend in retail spending growth over recent years as spending in the retail sector has shrunk as a share of total consumer spending; currently at just over 31 per cent," Ms Mousina said.
Low wages growth and slowing house price growth remain a factor, and will limit disposable income and hurt retail spending, she said.
"There are still a lot of risks to consumer spending," Ms Mousina said.
ANZ senior economic Jo Masters said stronger spending in the final few months of 2017 is not enough to brighten the spirits of the retailers.
"We don't think this changes the story of a challenging retail environment, with soft demand for the most part and competitive forces weighing on prices," Ms Masters said.
Commonwealth Bank senior economist John Peters said it is unlikely that the growth in retail spending will be sustained.
"Any positive impact on the retail sector from strong employment growth and a buoyant tourism sector looks likely to continue being eclipsed by historically soft wages growth and diffident consumers," he said.
The Australian dollar was boosted by the strong numbers, hitting a two-and-a-half month high of 78.82 US cents.
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