Rio Tinto and All Ordinaries

Australia economy: Today data shows retail turnover fell by 0.1 per cent to $24.3 billion in July, according to Australian Broadcasting Corporation. The contraction in sales was in strong contrast to the revised 0.6-per cent growth posted in June, helped by the Federal Government budget stimulus measures. The new figures have been released by the Australian Bureau of Statistics, just a day after it revealed Australia economy grew in the second quarter at its slowest pace in more than two years. Citi economist Josh Williamson described the result as the worst quarterly start to retail trade in three years. "The Government budget stimulus to small business was short-lived," Mr Williamson said. "As we expected, the accelerated depreciation policy was just an end-of-year tax benefit with little real economic value. "Sales of electrical goods – down 3.3 per cent in July- and hardware –down 1.4 per cent -have returned to pre-budget levels, while other recreational goods are back to mid-2013 levels. Nevertheless, we can't afford to be complacent, writes Patrick Carvalho and Michael Potter. "We were never optimistic about the small business assistance package but its half-life was even less than we expected." As with yesterday GDP figures, the July sales data also came in well short of analyst expectations that turnover would grow by 0.4 per cent. Australia not heading to recession yet Despite sobering growth figures, it too early to say Australia is heading to a recession. (news.financializer.com). As reported in the news.