- Treasurer Joe Hockey
Australian retail sales unexpectedly declined in July, the first fall since May 2014, due to mounting consumers' pessimism amid tough economic times. Sales dropped 0.1% in the reported month from June, when they climbed a revised 0.6%, according to the Australian Bureau of Statistics. Economists, however, had expected a 0.4% rise. The data points to renewed weakness in consumer morale, which stems from the soft economic climate amid the mining slowdown. Figures released by the ABS earlier in the week showed that the Australian economy grew at its slowest pace in four years last quarter, led by a drop in mining and construction activity, while household and government consumption were two of the main contributors to growth over the three-month period. The economy expanded only 0.2% in the second quarter, against the 0.4% economists' growth forecast.
Meanwhile, Australia's trade gap unexpectedly shrank in July, but the preceding month's figure was revised to show a much bigger shortfall than previously thought. The trade deficit contracted to A$2.46 billion in the measured month, compared with the A$3.05 billion in June. Exports surged 2.0% over the month to A$26.9 billion, raising hopes that the recent drag on growth from exports will be temporary. Imports, meanwhile, remained largely flat at A$29.4 billion.
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