Australian economy to rebound after most contraction...

Australian retail sales advances as mining industry expands in April 

Australian economy confirmed today that the economic recovery to rebound in the second quarter after the most contraction in two decades, where the nation’s retail sales accelerated in the April month, more than expected as the mining sector and business investment growth rebounded and gained a great performance amid the negative natural disaster impacts.

Retail sales seasonally adjusted (MoM) in Australia rebounded 1.1% in April, which compared with a previous drop by 0.5% in March. The actual reading came better than expectations that estimated of -0.4%.

The Australian business investment sector has gained a best performance in the first quarter of the year after the natural disaster, the third consecutive quarterly increase, affected by the improvements in mining sector, which supported to give a positive push to the economic recovery.

Moreover, there are a lot of supports that help Australia to recorded an expansion in the second half of this year such as the BG Group's project that will start work on a $15 billion liquefied natural gas venture in Queensland, generating 5000 jobs, while data in recent days have shown Australian wages grew at the fastest annual pace in almost two years and business investment reached a record.

In the wake of the government's efforts to put the economy on the track, the Reserve Bank of Australia (RBA) decided this month to leave interest rates steady for the fourth consecutive month at the highest level of 4.75% to support the economy after the floods and cyclone damage that hit the nation.

The global economy has increased its confidence for the Australian economy, supported by the increases demand for Australian exports during the period.

Meanwhile, Spending at department stores rose 3.6%, while clothing and footwear spending increased 1.2%, and consumers spent 0.3%, less in April at cafes and restaurants.

On the other hand, the Australian trade balance surplus narrowed to A$1597 million during the month of April, compared to a previous surplus of A$1740 million in March, while analyst's forecasts referred to $A2000 million.