By Wayne Cole
SYDNEY, Jan 8 (Reuters) - Australia's retail sales posted a fourth straight month of solid growth in November and current indications show shops are enjoying a bumper Christmas season as stronger employment and falling fuel prices prop up consumer sentiment.
Friday's data from the Australian Bureau of Statistics showed retail sales rose 0.4 percent in November, from October when they increased by an upwardly revised 0.6 percent. The biggest gains came in home wares, clothing and eating out.
Combined with record demand for new cars, consumers are doing their part to offset a mining slump. Household spending accounts for 56 percent of Australia's A$1.6 trillion ($1.17 trillion) annual economic output, mining less than 9 percent.
The retail industry alone is worth A$290 billion a year and is the second biggest employer with 1.25 million workers.
The government's retail data also has yet to cover online sales, which are growing much faster. National Australia Bank estimates online sales rose 11.4 percent in the year to November to a healthy A$18.1 billion.
The Reserve Bank of Australia (RBA) has repeatedly pointed to strengthening consumer spending as an argument against the need for further cuts in interest rates.
Indeed, it was notable this week that market odds on another easing have narrowed only slightly even amid turmoil in global equity markets and escalating concerns over China's outlook.
Rates are already at a record low of 2 percent and policy makers are reluctant to ease further, in part for fear of fuelling a debt-driven bubble in home prices.
Consumers already seem confident enough to splash out on big ticket items.
Sales of new vehicles rose solidly in both November and December to set the seal on a record year with 1.16 million cars bought. Sales of sports utility vehicles (SUV) alone were up over 15 percent on the year.
Neither were they shy in spending big on luxury brands. Maserati sold 29 percent more cars in the year, Porsche 45 percent and Lamborghini a cool 211 percent.
Australians spend around A$20 billion on vehicles annually, equal to almost 9 percent of total household consumption.
The Christmas shopping season is also going well. Retailers were expected to rake in almost A$17 billion between Dec. 26 and Jan. 15, according to the Australian Retailers Association and Roy Morgan Research.
An early reading on consumer sentiment out this week reiterated the buoyant theme.
"Stronger employment conditions and the falling petrol prices appear to be major positive factors for consumer spending and confidence going forward," said Warren Hogan, chief economist at ANZ.
"It is a good sign for the economy that consumers are particularly upbeat about their current financial situation."
That is notable as the RBA recently published a study of confidence surveys that showed responses on personal finances were the best leading indicators of actual spending.