The economy continues to recover but the household sector lost momentum in recent months, The Treasury says. Residential construction was expected to contribute strongly in coming quarters as building consents continued to rise. Employment was expected to begin to expand again in coming quarters But with more people seeking work and more firms able to increase work hours rather than employees, wage growth was likely to stay subdued.  After retail sales rose in the December quarter, momentum might continue to ease in the short term, consumer and retailer confidence slipping. Even though uncertainty continued to dominate the global economy, Australia and Asia were recovering strongly, it said. That, along with a lower dollar and more positive outlook for manufacturing and construction, boded well for exporters. - The National Business Review