Irish consumers are becoming more confident, believing that the worst of the economic downturn has passed, according to the latest IIB/ESRI consumer confidence survey.
The overall IIB Bank/ESRI Consumer Sentiment Index rose to 68.0 in September compared to a figure of 63.0 in August.
Mr David Duffy of the ESRI said the rise in September is due to consumers having a more positive perception of both the future environment and current conditions.
The forward-looking component of the index increased to 54.4 in September from 49.6 in August while the current conditions component rose to 88.3 from 83.0 in August.
Despite the improvement in sentiment there is some evidence that consumers remain cautious. The three-month moving average for the sentiment index shows a much more moderate rise to 64 in September from 63.2 in August.
Mr Austin Hughes chief economist at IIB Bank that the scale of the improvement in sentiment seen in September is "surprising" but the important aspect is that it builds on August's more modest gains.
"This suggests Irish consumers feel the worst is now behind them in terms of the general economic climate," Mr Hughes said.
In particular, Mr Hughes noted that anxiety over widespread job losses seems to have eased slightly.
Mr Hughes surmised that the current level of the sentiment index is consistent with a "still cautious but slightly less fearful attitude" on the part of Irish consumers which points towards a relatively modest but improving outlook.