Relatively high confidence among shoppers and the continued drop in the unemployment rate saw modest retail spending growth in the first few weeks of 2021.
The Australian Bureau of Statistics' preliminary figures for retail trade in January showed a 0.6 per cent increase, coming off a 4.1 per cent drop in December.
"There continues to be variations in retail sales between states and territories, as COVID-19 restrictions are tightened or eased in different parts of the country," the bureau's Ben James said.
All states and territories rose in January, except Queensland (-1.5 per cent), where a three-day lockdown impacted trade.
Recording a one per cent rise, NSW led the increases as restrictions that began in December were eased during January.