Source: The Australian

RETAIL sales were much weaker than expected in the first quarter, sending the Australian dollar to its lowest level in over a week and fuelling concerns the economy contracted sharply last quarter.

Economists said the size of the fall shows the impact of devastating floods in Queensland in January and a massive storm in February severely dampened consumer demand.

At 29-year highs, the Australian dollar is also fuelling a trend toward internet shopping.

Higher oil prices and earthquakes in New Zealand and Japan likely further dented the mood of consumers, they said.

The data will also give the Reserve Bank of Australia more time to consider when to next raise interest rate increase, despite first quarter inflation rising by more than expected, economists said.

To read the full story, follow this link: www.theaustralian.com.au/business/markets/retail-slump-fuels-fears-the-australian-economy-shrank-in-the-first-quarter/story-e6frg926-1226050452469