Source: ABC News

There has been a better-than-expected rise in retail sales in July.

Figures from the Australian Bureau of Statistics show turnover rose 0.5 per cent compared to the month before in seasonally adjusted terms. Economists were expecting a rise of just 0.3 per cent.

There was a jump in sales in the category including books and newspapers, recreational equipment and pharmaceutical goods.

That was coupled with a rise in the turnover of department stores, cafes and restaurants.

But clothing, footwear and accessory retailers saw a 4.2 per cent slide in sales.

Turnover rose in all states except Queensland, which saw a decline of 0.2 per cent.

Economists believe the significant discounting by retailers helped them achieve a better-than-expected increase in sales.

NAB Capital chief economist Rob Henderson says retailers have had to work hard for the result.

"Retailers have been cutting their prices and by the looks of this they are actually achieving an increase in volume turnover as a result of that," he said.

"So it's a pretty positive number, that half a per cent rise in the month is consistent with the long-run average monthly rise in this series, but clothing and footwear retailing has been very weak now for the past three months and that weakness just continued."

To read the full story, follow this link: www.abc.net.au/news/2011-09-01/abs-statistics-show-retail-sales-rise/2865822