Consumer sentiment improved in October, the third consecutive monthly rise, as people took the view that the Irish economy appeared less vulnerable than previously feared.
According to the Consumer Sentiment Index, compiled by IIB Bank and the Economic and Social Research Institute, consumer confidence is now at its highest level since September 2002. The index was at 69.4 in October, up from 68 in September.
Remarking on the new data, IIB chief economist Mr Austin Hughes, said: "The decline in the index of current conditions is primarily driven by consumer's becoming less positive about their financial situation compared with 12 months ago."
He said the main message was Irish consumers were now less fearful about the general economic outlook. Mr Hughes said the risk of job losses in particular was lessening.
However, this was offset by remaining caution about "personal finances", he added.
The Irish consumer figures were "notably better than comparable French data also released today. That may suggest that consumers here had become too pessimistic in relation to the Irish economic prospects in the past year or so. "
Mr Hughes said the data also suggested the Irish economy has weathered the recent domestic downturn better that most others and is "emerging without the sort of domestic imbalances that are evident elsewhere".