Online sales are growing at the fastest annual pace since March.

Internet shopping grew by 12.8 per cent in the year to September.

Demand was particularly strong for homewares and appliances, which posted annual growth of 35.8 per cent, followed by electronic games and toys (up 35.1 per cent).

But National Australia Bank’s online retail index is also showing a longer-term slowdown.

“While growth in online sales continues to outpace traditional retail, its growth rate has been slowing gradually,” NAB’s chief economist Alan Oster said in a statement.

In September 2011, online retail sales were growing at 28.4 per cent a year.

AAP