Consumers went on record spending spree

The impact on consumer spending from last year's $10.4 billion federal government fiscal stimulus package appears to have been extended into January.

New data shows retail spending touched a record high of $19.2 billion in January, a seasonally adjusted 0.2 per cent increase on December.

Retail sales had surged 3.8 per cent in December when the government doled out cash payments to pensioners and carers as part of its stimulus package.

Economists had expected a 0.5 per cent decline in January.

While December's activity gave a boost to economic growth, there is still some uncertainty whether it was enough to prevent gross domestic product from posting its first contraction in eight years in the December quarter.

There was, however, a positive result from international trade in other data released on Tuesday.

The December quarter current account deficit showed a sharp narrowing to $6.499 billion from a revised $9.498 billion in the previous quarter.

Economists had expected a deficit of $7.5 billion in the December quarter.

Net exports - exports minus imports - are expected to add 1.5 percentage points to GDP.

The December quarter national accounts are released on Wednesday.

© 2009 AAP