Consumer sentiment reached a two-year high in April boosted by increased optimism about job prospects and expectations of continued good economic growth.
The monthly index, which measures consumer sentiment, rose to 90.8 last month compared to 86.9 in March. It last rose to that level in May 2002. The index is compiled by IIB Bank in conjunction with the Economic and Social Research Institute.
Commenting on the outcome yesterday, IIB Bank economist Mr Austin Hughes said the fact that consumer sentiment had now risen for the ninth consecutive month suggested that a significant economic upturn is underway.
"Consumer sentiment is improving more in Ireland than elsewhere because we lack the type of feel-bad factors that are weighing on confidence in a number of other economies at present."
Mr Hughes commented that Irish consumers are not as worried about job prospects as their US counterparts or as fearful of higher interest rates as those in the UK. Similarly, growth prospects here are much stronger than in continental Europe, he said.
The index of current economic conditions increased to 99.8 in April from 96.1 in March. The forward-looking sub-index - the expectations index - rose to 84.7 in April from 80.7 in March.
Most of the improvement in consumer sentiment in April was due to a more positive assessment of the outlook for employment and a brighter view of the general economic climate. However, households were slightly more downbeat about their own financial situations in the coming months.
IIB Bank said that it can't be entirely excluded that Irish consumers rising confidence may be misplaced and that they could become over-burdened by debt and a faltering property market at some point in the future.