Consumer sentiment remains extremely weak. The Westpac Melbourne Institute Consumer Sentiment index fell 1.3 per cent to 81 points in January.
It's the lowest consumer sentiment for January on record, apart from during the early 1990's recession despite a notable easing in rate rise fears.
"The continued weak reads on sentiment show Australian consumers remain under intense pressure as the surging cost of living, materially higher interest rates and rising tax take weigh heavily on incomes," says Westpac senior economist, Matthew Hassan.
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The narrative that households 'prioritise travel spending' may have had credence, but logic suggests it must gradually be less true.
QAN, REX and unlisted Virgin Australia continue to charge high fares, especially QAN and Virgin, but eventually, these may have to somewhat decline if consumer sentiment remains in the doldrums.
