SURVEY: Consumer sentiment showed signs of recovery in April, according to the latest survey of confidence by IIB Bank and the ESRI. The index rose to 91.7 last month from a figure of 83.1 in March, recovering to a level last seen in January.

"By early April, it had become clear that the worst fears in respect of a global economic downturn would not be realised," said Mr Austin Hughes, economist at IIB Bank.

"There were also signs that the weakening in Irish economic activity would be reasonably contained."

At the time of the survey, budget tax reductions were appearing in wage packets while signs of a rebound in the property market and the heavy uptake of special savings incentive accounts may also have boosted consumer sentiment, he said.

However, the Economic and Social Research Institute (ESRI) cautioned that the three-month moving average for the sentiment index was unchanged, suggesting that any recovery in confidence remained tentative.

The ESRI's Mr David Duffy also noted that the main impetus for the improvement in consumer sentiment came from a more optimistic assessment of future prospects rather than current conditions.

"Consumers still rate current economic conditions quite negatively but they have become more optimistic about overall economic prospects and their future financial prospects," he said.

But he added that consumers remained concerned about employment prospects.