Australian retail sales had the biggest increase in 10 months in November as Black Friday discounting drew cost-conscious shoppers, but even so they missed forecasts suggesting consumer demand remains subdued.

After being squeezed by cost of living, cash-cautious Aussies have taken advantage of Black Friday sales and cinematic hits during the month of November.

Consumer spending is past its weakest point but still subdued, despite a spike in activity from annual promotions in November.

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Australia retail activity jumped in November, supported by Black Friday sales and widespread discounting ahead of Christmas.

Retail sales rose across all sectors in November, prompting fresh fear that the Reserve Bank may pause any pending interest rate cuts.Australian retail turnover rose 0.8% for the month, according to figures released on Thursday morning by the Australian Bureau of Statistics (ABS).

Australian Retailers Association's Chief Industry Officer Fleur Brown says Black Friday sales were a “big winner” for retail sales last year.