Australia posts record surplus but retail sales soggy

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Australia posts record surplus but retail sales soggy
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Australian exporters enjoyed bumper sales last quarter gifting the country its f...

SYDNEY - Australian exporters enjoyed bumper sales last quarter gifting the country its first current account surplus in over four decades, however, wider economic conditions remained sluggish as households crimped spending.

Data out on Tuesday showed Australia swung to a larger-than-expected current account surplus of A$5.9 billion when analysts were looking for a A$1.4 billion windfall, led by higher prices for its key resources - iron ore and coal.That means net exports added a cool 0.6 percentage points to gross domestic product last quarter.

In contrast to the blockbuster external economy, Australia’s household sector is battling miserly wage growth and subdued home prices with other data showing retail sales fell 0.1% in July. A median of 19 economists had predicted a 0.2% rise.

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