A more optimistic outlook for the jobs market and the maturing of more than half a million SSIAs led to a slight improvement in consumer sentiment in April, according to the latest IIB/ESRI Consumer Sentiment Index.

Consumer sentiment improved modestly in April, rising to 83.0, from 78.5 in March, to register the first monthly gain since January.

But the underlying trend remains weak, with the three-month average falling to 82.1, its lowest level since January 2004.

While the sharp fall seen in March was entirely reversed, this month's reading still remains well below those seen through most of the index's 11-year history, according to Austin Hughes, chief economist with IIB Bank.

"The main driver of the rise in confidence was a slightly less pessimistic assessment of the outlook for employment," he said.

"While consumers are still worried about job security, fears of a complete jobs meltdown seem to have eased."

Consumers were also more optimistic about their household spending power in the coming year. "This probably reflects the impact of pre-election promises and the fact that more than half a million SSIAs mature during April," he added.

Mr Hughes said it was remarkable that the SSIA funds had not generated a more pronounced feel-good factor across the Irish economy.

"Instead, it appears that the once-off nature of the payout is being overwhelmed by concerns about a more enduring and threatening reduction in job security as well as broader fears about Irish economic prospects," he continued. "Concerns about Irish economic prospects, the housing market and inflation mean many consumers are worried. So 'feel bad' rather than 'feel good' remains the order of the day. As a result, most consumers will treat their SSIAs as 'rainy day' savings rather than as a windfall that can be spent without care."

The prospect of a seventh rise in interest rates, a sharp spike in petrol prices and a rebound in Irish inflation to above 5 per cent had combined to cause a deterioration in consumers' assessment of their spending power in the past year, he concluded.