Retail trade rose by a seasonally adjusted 0.5% in July, according to the latest figures from the Australian Bureau of Statistics.
The figures are higher than expected, with analysts previously forecasting a 0.3% rise.
Retail trade rose to $20.646 billion, up from $20.542 billion in June. The biggest gains were seen in “other retailing”, up by 0.7%, food retailing up 0.2%, households goods up 0.2%, and cafes, restaurants and takeaway food services up 0.2%.
Victoria recorded the biggest rise of 0.4%, equalled with Western Australia, while Queensland and the Tasmania saw trade rise by 0.3% and 0.1% respectively. Trading was flat in the Northern Territory, while New South Wales fell 0.2%, South Australia by 0.5% and the Australian Capital Territory by 0.7%.
Private capital expenditure rose by a seasonally adjusted 4.9% in the second quarter, according to the latest official figures, beating expectations of a 4% rise.
The figures also show the estimate for the 2010-11 year is now $119.747 billion, which is up by 11.8% from the previous year’s estimate.
The manufacturing industry contracted again in August, according to the Australian Industry Group-PricewaterhouseCoopers Performance of Manufacturing Index.
The index fell by 0.1 points to 43.3, well under the 50-point level separating expansion from contraction.
Two of the 12 sectors, food and beverage, and clothing and footwear, recorded activity increases. The biggest falls were seen in the paper, print, textile, fabricated metal and miscellaneous sectors.
“The industry has a very positive future in Australia,” said AIG chief executive Heather Ridout in a statement.
“However, we need decisive government action and a long-term forward-looking strategy for manufacturing that would contribute to creating the most competitive environment for the sector to flourish and survive through the resources boom.”
The Australian sharemarket has opened higher this morning, after a modest lead from the US where new economic data on jobs was better than expected.
The benchmark S&P/ASX200 index was up 52 points or 1.23% to 4349.5 at 12.15 AEST, while the Australian dollar remained steady at $US1.06c.
AMP shares rose 1.32% to $4.59, while Commonwealth Bank shares rose 0.68% to $48.55. NAB shares rose 1.77% to $24.14 as ANZ gained 1.03% to $20.50.
In the United States, the Dow Jones Industrial Average rose by 53 points or 0.46% to 11,613.
Building products manufacturer CSR has said it will close some its manufacturing efforts in Melbourne and restructure the Viridian glass business.
In a statement, the company said it expects Viridian will result in a pre-tax loss of $6-8 million for the six months to September 30.
“In response to these challenges, Viridian will restructure its float glass and bulk laminate manufacturing operations, a process which will be completed over the remainder of this financial year,” CSR said in a statement.
“CSR’s Aluminium business has also been affected by the recent lower US$ aluminium price, combined with the consistently high Australian dollar.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
