Bloomberg cited Mr Wayne Swan Treasurer said Australia economy particularly industries such as manufacturing and retailing is under pressure as households restrict spending and the high currency curbs returns from exports.

Mr Swan said “There’s no doubt there are pressures in our economy. Many industries like manufacturing and retailing are doing it tough as they battle with cautious household spending and a high Australian dollar.”

Mr Swan is waiting for second quarter gross domestic product figures on September 7 to show the economy resumed its expansion after a 1.2% contraction in the first three months of the year as flooded coal mines, railways and farmland hurt exports. GDP probably grew 1%.

He said that “It’s taken longer than expected to get coal production back up and running, but we have seen a recovery in exports in recent months.”

Reports last week showed retail sales advanced for the first time in three months in July and mining projects boosted second quarter business investment.

Australia dollar has gained 17% against the US currency the past year which is hampering exports outside the resources industry where demand from China and other Asian nations have bolstered prices.

(Sourced from Bloomberg)