The big boosts were clothing, footwear and personal accessory retailing up 3.1 per cent, food retailing up 0.5 per cent, household goods retailing up 1.2 per cent, department stores up 3.4 per cent and cafes, restaurants and takeaway food services up 0.9 per cent the Australian Bureau of Statistics said.

Afterpay achieved $1 billion of monthly underlying sales in November, representing its highest monthly performance since its inception.

The retail figures may help lift poor household consumption growth of just 0.1 per cent across the September quarter.

The strong numbers could also take some pressure off the Reserve Bank to cut interest rates to a record 0.5 per cent next month despite out of control fires across the country having influenced financial markets to price in a higher chance of another rate cut.

With two key measures - inflation and unemployment - due to be reported before the central bank's February 4 meeting, financial markets have already priced in a 45 per cent chance of a 0.25 percentage point rate cut next month.

Economists such as AMP Capital Senior Economist Diana Mousina don't expect the retail sales momentum to be sustained and that this will mean the RBA might feel pressured to cut again.

"Looking back at the retail data over recent years shows December is usually weak after the lift in November sales so we expect some pay-back in the data next month," Ms Mousina said.


"There is a clear need for policymakers to provide consumers with more support, with tax cuts more favourable than interest rate cuts. However, this is unlikely to happen before the May Federal Budget so the pressure will still remain on the Reserve Bank to cut interest rates."

AMP now expects a 0.25 per cent rate cut in February and March, with the cash rate hitting the RBA’s lower bound of 0.25 per cent in March.

The latest retail figures however show that every state saw a lift in sales. Victoria was up 1.1 per cent, Queensland up 1.2 per cent, NSW up 0.7 per cent, South Australia up 1.4 per cent, Western Australia up 0.5 per cent and Tasmania up 0.4 per cent.

The surge in house prices over the past three months of 4 per cent – the fastest quarterly growth in a decade - saw increased spending on household goods retailing. Furniture, floor coverings, houseware and textile goods retailing rose 1.3 per cent in November while electrical and electronic goods retailing jumped 2.1 per cent.

Online retail turnover contributed 7.1 per cent to total retail turnover in original terms in November 2019. In November 2018, online retail turnover contributed 6.6 per cent to total retail.

NAB Online Retail Sales Index data released this week showed a jump in November sales after contracting in October. The index rebounded 2.4 per cent in November on a seasonally adjusted basis outpacing the broader ABS retail sales series.

"Looking through the month-to-month volatility, sales growth seems to have accelerated over recent months," NAB group chief economist Alan Oster said.

"All categories recorded growth in sales in month-on-month growth terms."

"Sales growth in regional areas grew slightly faster than Metro areas in a month-on-month basis," Mr Oster said.

Chief investment officer at regional shopping centre owner McConaghy Properties Peter Rossi said retailing had been resiliant over the last few months.

"Our December quarter has been quite strong. The traffic numbers a down a little bit but the spend per basket has held up well," Mr Rossi said.