Retail spending has bounced from the small fall suffered in July and economists expect the tills to keep ringing in the months ahead.
Retail trade rose 0.4 per cent in August to $24.4 billion, after spending dropped 0.1 per cent in July, the first monthly fall in just over a year.
The latest figures were boosted by a 1.3 per cent rise for department stores and an identical increase in what is labelled `other' retailing, which includes books, sporting equipment, toys and flowers.
CommSec economist Savanth Sebastian said it was encouraging to see the rebound, especially in the run up to Christmas.
"There were certainly some concerns about how long the hangover effect from the federal budget stimulus would last," he said.
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"I think the lift in activity should also translate into a pick up once again in September, with the lift in consumer confidence coming through as well."
Recent turmoil on financial markets, sparked by worries about the slowing Chinese economy, hasn't appeared to have impacted confidence, Mr Sebastian said.
"Consumers seem to remain upbeat about life, the change of prime minister has also supported that story," he said.
A lower Australian dollar will also make local retailers more competitive with their overseas rivals, Mr Sebastian added.
"There are some encouraging signs," he said.
NAB economist Tapas Strickland said he expects spending to improve because retailers have been enjoying favourable business conditions, such as trading volumes and profitability.
"There's a pretty good relationship between retail trade and the NAB's measure of retail trade business conditions," he said.
"Given that the business conditions are well above average, you'd expect some pretty good prints in the months ahead."
Most of the strength in retail spending came in the non-mining states and high-end department stores, Mr Strickland said.
HOW AUSSIES SHOPPED IN AUGUST
* Sport and camping equipment, toys and games up 2.3pct
* Stationery, antiques, flowers up 1.6pct
* Department stores up 1.3pct
* Pharmaceuticals, cosmetics and toiletries up 1.0pct
* Liquor up 0.8pct
* Electrical and electronic goods up 0.8pct
* Groceries up 0.6pct
* Newspapers and books up 0.5pct
* Takeaway food down 1.0pct
* Clothing down 1.6pct
Source: ABS seasonally adjusted numbers
