2012.05.30 04:40:04 MARKET TALK: Mining Sector Outpacing Broader Aussie Econ - RBC

0240 GMT [Dow Jones] Australian retail sales and building construction data show divergence between mining and non-mining sectors of the country's resource-rich economy picking up through 1Q and likely into 2Q as well, says RBC fixed-income strategist Michael Turner. Retail sales fell 0.2% on month in April, while the total value of construction, including building and engineering work--driven by mining states of Western Australia and Queensland, especially work on LNG projects--rose 5.5% in 1Q from 4Q11. "If you look at the rest of the construction sector, residential construction continues to contract (and) non-residential activity is also pretty weak." The data is unlikely to sway the RBA, which is likely to keep rates on hold next week, he adds, though the risks "are skewed in the direction of further easing". (rachel.pannett@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires May 29, 2012 22:40 ET (02:40 GMT)