Economists say an early spring splurge on clothes and gardening equipment underlines the case for further interest rate rises, but retailers are urging the Reserve Bank of Australia to hold fire amid fears of a tough Christmas selling season.

Retail spending increased by a stronger-than-expected 0.9 per cent in September, the Australian Bureau of Statistics said on Monday, driven by a lift in purchases at department stores and household goods stores as shoppers made the most of unseasonably warm weather.