Consumer confidence improved in October after sharp falls over the summer, according to a survey released yesterday. But consumers remain worried about the state of their personal finances despite a number of recent forecast that the economy will continue to perform well.

The latest Consumer Sentiment Index - which is produced jointly by the Irish Intercontinental Bank (IIB) and the Economic and Social Research Institute (ESRI) - rose in October to 85.0 from a 21-month low of 80.5 recorded in August. The index fell sharply in August as concerns about "Rip-off Ireland" and rising energy prices weighed on consumers and its recent levels contrast with a level of 104 attained last March. The index has averaged at a level of 105 over the last decade.

IIB chief economist Austin Hughes welcomed the increase and attributed it to easing oil prices, expectations of a populist budget and the looming maturity of SSIAs. But he said that its extent was disappointing considering the recent strength of employment growth.