Retail sales rose by a seasonally adjusted 0.4% in January, according to the latest figures from the Australian Bureau of Statistics, beating expectations of a 0.3% rise.
Trade rose to $20.4 billion from $20.3 billion in December, the ABS said.
The figures should provide some optimism for retailers, who have reported weak results in the past few weeks as natural disasters, rampant discounting and frugal customers have all put a lid on retail trading.
Meanwhile, the national account deficit rose from $6.5 billion to $7.3 billion in the December quarter, the latest ABS figures reveal.
Exports came to $73.76 billion, with imports at $67 billion. The ABS said net exports will make no contribution to fourth quarter gross domestic product.
Commodity prices will fall as miners and farmers continue to increase their output, but commodity experts will still rise 14% to $251 billion in 2011-12, the Australian Bureau of Agricultural and Resources Economics and Sciences has said.
“Over the medium-term, some of the price rises we have seen will start to ease a bit as there’s expected to be a supply response to the rises in agricultural production as well as mineral and energy output,” Paul Morris, ABARES deputy director, told Reuters.
“Overall, compared to long-term averages, the outlook for minerals and energy is reasonably favourable.”
The ABARES says commodity export earnings will rise 14% to $251 billion for the 2011-12 financial year and stay at that point for the next four.
Manufacturing activity expanded in February for the first time in five months, according to the latest Australian Industry Group-PriceWaterhouseCoopers performance of manufacturing index.
The index rose by 4.4 points to 51.1 in February, just above the 50-point level separating expansion from contraction.
New orders rose 7.2 points to 53.2, with companies expecting further demand and increasing their inventories as a result.
“The welcome lift in the manufacturing index was largely off the back of a substantial improvement in the new order sub-index and those sub-indexes related to restocking,” AIG chief executive Heather Ridout said. “This suggests a more encouraging immediate outlook for the sector.”
The Australian sharemarket has opened higher today following a solid night on international markets and the release of positive local retail data.
The benchmark S&P/ASX200 index was up two points or 0.05% to 4834.2 at 12.10 AEST, while the Australian dollar also gained some ground to $US101.9.
AMP shares rose 3.48% to $5.33, while Commonwealth Bank shares also rose 0.17% to $53.20. NAB shares rose 0.27% to $25.87 as Westpac fell 0.59% to $23.39.
As reported by The Age, collapsed bookstore chain Borders was left with only $1 million in its coffers after it fell into administration last month.
The report claims that at this morning’s creditors meeting, attendees were told the company has total cash of $6.4 million and debt of over $118 million.
Ferrier Hodgson partner Steve Sherman reportedly said it is unlikely the company will be handed back to its private equity owners, and that it will need to start reviewing potential store closures.
Comments from investor guru Warren Buffett pumped up optimism on Wall Street overnight, with the veteran saying he is currently searching for large acquisitions.
The Dow Jones industrial average was up 95.89 points, or 0.79%, at 12,226.34.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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