Australian shoppers jumped on discounted goods and spent more on electronics last month, resulting in above-expectations retail sales in October.

The 0.6 per cent uptick was a little higher than the 0.4 per cent consensus forecast and followed a more subdued 0.1 per cent gain in September.

Australian Bureau of Statistics head of business statistics Robert Ewing said sales activity grew in October ahead of the Black Friday sales.

“The stronger than usual October month saw some retailers enticing buyers to spend early with discounting, particularly on discretionary items.”

The “other retailing” category, which includes cosmetics, sports and recreational goods, logged a substantial 1.6 per cent increase.

Household goods sales rose 1.4 per cent.

Mr Ewing said the rise in discretionary spending was driven by online discounting events, with people also spending more on electrical goods, particularly televisions and other audio-visual equipment.

Yet not all non-food categories rose over the month, with clothing, footwear and personal accessory retailing sinking 0.6 per cent and department stores sales falling 0.3 per cent.

Oxford Economics Australia head of macroeconomic forecasting Sean Langcake said the months leading into Christmas were often volatile and influenced by sales periods but the underlying trend was improving.

“Tax cuts and lower inflation appear to have been supportive for consumer spending, which should continue to gain momentum into 2025,” he said.

Australian Retailers Association chief industry affairs officer Fleur Brown welcomed the modest increase in spending but said 2024 had been a challenging year for retailers.

“Increased costs of doing business, interest rates, retail crime, supply chain demands and more have continued alongside subdued consumer spending,” Ms Brown said.

The figures highlighted shifting consumers habits in the face of a cost-of-living crunch, she added, with savvy shoppers using October to plan for the holiday season early by stocking up on gifts and making purchases earlier to take pressure off budgets.

“There is noticeable buoyancy in the ‘other’ category, which includes cosmetics, sports and recreational goods, as shoppers prove the ‘lipstick effect’ in action as they continue to spend on little luxuries and focus on health and well-being,” Ms Brown said.