Fashionistas are saving Australia’s economy.

A flurry of spending in clothing stores in December 2011 was, in part, responsible for the modest recovery in spending for the month, according to the Commonwealth Bank of Australia (CBA).

The bank’s December Business Sales Indicator report showed an increase of 0.2 per cent in economy-wide spending as 2011 drew to a close.

The best-performing sectors were mail order and telephone order providers (up 3.3 per cent) followed by clothing stores (up 1.7 per cent). For the year, clothing sales were up 10.8 per cent.

Other strong performers for December were the amusement and entertainment sector and retail stores, which both increased by 1.3 per cent.

The results were positive news for the retail sector after a tough year in which it was the worst performing sector, with spending down 9.3 per cent.

The Business Sales Indicator takes the pulse of national spending trends by analysing credit and debit card transactions processed through CBA point-of-sale terminals which account for approximately 30 per cent of the Australian market.

CBA analysts warned that consumers were continuing to spend cautiously but added that the December results were a reason for optimism.

Local business banking executive general manager Matt Comyn said the multi-speed economy told the story of a widely varied sector.

Despite subdued trading conditions throughout the Christmas spending period, there was sustained growth for the month, he said.

“We’ve continued to see momentum in the data and a more sustained growth in sales across the country over the latter half of 2011,” he said.

CommSec chief economist Craig James said the figures suggested economy-wide recovery was continuing.

“These positive figures are important as we must remember that most of last year was spent in negative spending territory. The fact that all states and territories and the majority of sectors are recording increases in sales is solid evidence of a recovery in economy-wide spending.”

Only four out of 20 measured sectors recorded losses for December, including hotels and motels.

“A positive mood has prevailed over the early days of 2012 and if the optimism is maintained then retailers are set for a better year,” Mr James said.