Retail Shares were down in early trading on Wednesday after reports confirmed a lacklustre 0.1 per cent growth in the sector.

According to the Australian Bureau of Statistics’ official statistics, April demonstrated an upswing of $171 million.

In April, exports climbed 4 per cent along with an increase in imports of 2 per cent.

Analysts say that the ABS figures are disappointing since they were expecting a surplus of $50,000 for the month, reports News.com.au

In another report indicating the strength of the economy, sales of new homes were up 1.6 per cent in May, adding to a cumulative increase in the last four months. The figure is the highest in more than a year, according to data from Housing Industry.

Chief economist at the Housing Industry, Harley Dale, was quoted by News.com.au as saying, "That outcome was important, following as it did a sustained period of weakness which saw activity in a majority of markets reach, historically, very low levels."

He added, "The key is whether a new home building recovery can be sustained, and at a growth rate sufficient to meaningfully assist the Australian economy with its rebalancing acts."

Mr Dale indicated that the figures point to modest growth in housing and that this trend is likely to catch on during the new financial year.