The recovery in consumer spending has been losing momentum: the Westpac Melbourne Institute Index of Consumer Sentiment fell from 110.5 in March to 104.9 in April and in March retail sales unexpectedly declined after two months of strong gains. In addition, in the same period, the number of home-building permits fell by the most in almost a year. To make things even worst, the unemployment rate, although still low by global standards, rose to 5.6%, its highest level in more than three years. Also, in April, conditions in the manufacturing sector worsened, with a PMI hitting its lowest level since 2009 as exporters continued to struggle with the strength of the domestic currency. On the positive site, in March, exports rose 1 percent yoy and the country reported its first trade surplus in fifteen months. And on May 7th, the Reserve Bank of Australia cut interest rates by a quarter of a percentage point to a record low of 2.75 percent.

In the fourth quarter, the GDP rose 0.6 percent qoq and 3.1 percent yoy driven by public investment and exports. Exports were up 1 percent yoy in March and 3 percent yoy in February.		In April, the Westpac Consumer Confidence fell by 5.1% to 104.9. In May, the Reserve Bank of Australia cut interest rates for the seventh time since November of 2011 to a record low of 2.75%.
In March, the unemployment rate increased to 5.6 percent. It has been on the upward trend since reaching 4.9 percent in June of 2012.		The Australian Dollar has gained nearly 25 percent against its U.S. counterpart since 2010. The strength of the Aussi is a major burden on domestic producers which struggle to compete with products made overseas.