Positive signs in economy: PM

Prime Minister Tony Abbott believes "significant positive signs" are emerging in the economy, as retail spending races to its fastest annual pace in more than four years.

But Treasurer Joe Hockey isn't getting too carried away with a spate of more upbeat numbers, rejecting suggestions he inherited an economy in better shape than expected.

Retail spending jumped 1.2 per cent in January to a record $22.9 billion, and followed an upwardly revised 0.7 per cent increase in December.

This was three times the growth expected by economists and, at an annual pace of 6.2 per cent, was the fastest rate since November 2009.

Mr Abbott described the sales figures as "very strong".

"While there is a long way to go, there are significant positive signs," Mr Abbott told parliament on Thursday.

But he said the government had much more to do to get the fundamentals right, including getting taxes and red tape down, raising productivity, and building the infrastructure that businesses needed.

"If we can do all that, there will be more jobs, more prosperity for all Australians," he said.

Australian Retailers Association executive director Russell Zimmerman called the retail figures a "breath of fresh air" for retailers, who had experienced a particularly rough trading environment in the past few years.

The data followed Wednesday's national accounts, which showed economic growth running at a more positive 2.8 per cent in 2013, led by rising exports and a strong rise in building approvals, which was reported earlier in the week.

The strengthening trend in exports continued in other data on Thursday, rising by four per cent in January, which helped lift the monthly international trade surplus to $1.4 billion.

Imports rose by only one per cent.

It was the third consecutive monthly trade surplus - after 22 months of deficits - and the largest since August 2011.

Even so, Mr Hockey dismissed the idea that Labor had handed him an economy in better shape than he had thought.

"We're turning the corner, but there's much work to be done," Mr Hockey told ABC radio, citing rising unemployment, deteriorating terms of trade and dismal consumer and business confidence.

Economists will be keen to hear Reserve Bank governor Glenn Stevens' take on the recent run of data when he appears before the House of Representative's economics committee on Friday.

ANZ Bank economists believe the RBA will be comfortable with the data. In a note to clients, they said they expected the cash rate to remain on hold in 2014 to allow activity in the economy to continue to improve.