Australian retail spending rose 6 percent over the year to August, reaching A$40.04 billion, in a sign that parts of the consumer economy remain resilient.

Cafes, restaurants and takeaway food led the way with an 8.43 percent jump, the strongest of any category. Australians are still spending on experiences even as they cut back elsewhere.

Economists describe a two-speed economy. Well-off households with savings buffers keep spending, while mortgage-stressed families retrench. The aggregate numbers hide a sharp divide.

ARC economist Glenn Fahey said the data showed consumers were being selective, prioritising dining and services over big-ticket goods.

The figures complicate the picture for the Reserve Bank. Strong spending suggests demand is holding up, which argues against rate cuts, but the weakness is concentrated among the most vulnerable. The Reserve Bank will parse the numbers for signs that demand is cooling among stretched borrowers.

Retailers heading into the crucial Christmas season face an uneven landscape: solid overall sales masking real pain at the household level.