IRISH CONSUMER sentiment improved marginally in March, with respondents less pessimistic about their employment prospects and the outlook for the economy, according to a new survey.

While consumers were still concerned about personal finances, the survey noted fears observed late last year were receding.

The KBC Bank Ireland/ESRI Consumer Sentiment Index rose to 60.6 last month, up from 57.0 in February, and the strongest since last October.

The rise brings the three-month moving average to 58.1. Any reading over 50 indicates a growth in confidence.

Easing concerns over prospects for the euro zone have also lifted consumer spirits.

“The fact that the collapse threatened late last year did not materialise is probably the key element in the recent turn in sentiment, but a steady stream of new job announcements may also be playing an important role,” the report said.

“There has been a marked decrease in the volatility of the index over recent months, which is likely a reflection of the greater stability in Europe following the successful restructuring of Greek debt,” Economic and Social Research Institute economist Cormac O’Sullivan said.