A senior Treasury official says there are early signs the federal government’s $10.4 billion stimulus package supported economic activity.

The pre-Christmas package, which included cash handouts to pensioners, carers and low-income earners, came with a government message to spend.

The package also included extra help for first-home buyers.

Measuring the package’s success would take several months, Treasury’s macroeconomic group head David Gruen told a Senate hearing on Wednesday.

Government data showed December retail trade was “very strong” as was retail trade for the December quarter, when compared to the previous several quarters.

There was also a “considerable” pick-up in property auction clearance rates and first-home buyer applications.

“So, there is evidence that both the direct payments and the support to the housing sector has had an affect of supporting economic activity,” Dr Gruen said.

But it was too early to give a definitive answer on the package.

“We had always anticipated that the effects would play out over several months, not simply in December.”

The government has since committed to a $42 billion stimulus package, aimed at heading off a looming recession.

AAP