Australia witnessed a surge in the retail sales since the end of the Federal Government’s cash stimulus payments in March, emerging the case for another interest rate rise speculated next month. The retail sales rose 1.4% in November, which is more than four times higher than the 0.3 per cent rise experts had tipped. As a consequence, there was a 0.4 per cent gain in October, the Australian Bureau of Statistics said.

The RBA has already raised its key rate three times in as many months to stand at 3.75 per cent, far above most other developed nations. Also, major commercial banks have raised the mortgage rates.

Also, the trade deficit decreased by 2 percent to A$19.3 billion in November due to a jump in iron ore and farm exports, while imports registered a fall of 3 percent to A$20.7 billion, recent report claimed.

The Australian currency rose to 92.48 U. S. cents at 11:59 a. m. in Sydney from 92.17 before the report was released.

Australia’s economy to experience economic fallout due to last year’s recession is generating more employment than the central bank and government forecast early in 2009. There are 99,500 new jobs in the three months through November.

Consumers shopped for goods worth $20.08 billion in November, from $19.802 billion in the previous month. Also, the food retail sector witnessed a 1.6 per cent jump, while pre-Christmas shoppers attacked the department stores, raising purchases from those outlets by 1.1 per cent, the ABS said.

Gross domestic product rose to the third straight quarter of growth, registering a 0.2 percent in three months through September. The improving scenario made Prime Minister Kevin Rudd to spend A$22 billion on roads, ports and schools.