The retail sector saw improvements in the month of April as its sales chalked up better numbers that signaled a better outlook for the local economy, according to the latest data issued on Thursday by the Australian Bureau of Statistics (ABS).

Economists are looking on much improved confidence among Australian consumers as the April retail figures pointed to growth of 1.1 percent, seasonally adjusted, to $20.74 billion in the month, which more than dwarfed the earlier projections of 0.4 percent surge.

Not only that the advance turned back the contraction suffered by the sector in March, analysts said that the moderate spending spree seen last month will relieve the pressures being felt by the national economy, which retreated by 1.2 percent in the first quarter of the year as the country faced successive natural disasters.

The new ABS figures also showed that Australians have improved on their savings, which went up by 11.5 percent in the month, while both the country's export and import industries soared by one percent that steadied the trade surplus at $1.6 billion.

Macquarie Group economist Brian Redican told the BusinessDay on Thursday that Australia's retail performance in April provided some boost for the economy but the country's international trade numbers are still worrisome.

The trade surplus, Redican noted, failed to hit the $2 billion mark predicted by many economists as he pointed out that dwindling numbers in coal exports effectively drag the economy "and data suggests there is a bit of inventory taking place rather than coal going for export."

Overall though, Redican said that while growths in the retail sector is generally sporadic, the economic activities are heading on the right path, with market investors giving their stamp of approval on the industry by pushing the Australian dollar up against the US currency.

Despite the rising numbers, retailers are feeling the heat of plunging consumer interest in the traditional from of shopping as REDgroup announced recently that more Borders outlet will be shuttered while Australians continue to patronise online retailers to take advantage of their higher purchasing power due to the solid Australian dollar.

This trend was supported by the retreating consumer confidence in May, which according to the Westpac-Melbourne Institute index, declined by 1.3 percent in the month, parts of which could be explained by tumbling home prices that further convinced many Australians to put a lid on their spending habits.

In light of the restricting attitudes among Australian consumers, the ABS said that moderate rise in spending numbers were seen in almost all the key retail sectors, barely managing to register a full figure growth in the month with most states across the country achieving better figures except for ACT and Tasmania, which recorded identical 0.2 percent of slides.