Consumer sentiment rises in April

Consumer sentiment rose in April as consumers become more upbeat about the prospects for the labour market and future household finances.

The combined KBC Ireland/ESRI Consumer Sentiment index rose to 65.6 last month, compared to 61.9 in March and an all-time low of 39.6 in July 2008.

The expectations sub-index rose from 44.5 in March to 53.7 in April. However, there was a decline in the index of current economic conditions, which weakened to 83.4 from 87.6 in March as concerns about current finances weighed on consumers.

"The improving trend in consumer sentiment of late suggests consumers sense the Irish economy has reached a turning point," said KBC Bank's Austin Hughes.

"They don't expect any dramatic near term improvement but if fears continue to fade we should see a slightly healthier trend in household spending as the year progresses."

He said conditions would likely remain tough for many people for a considerable time, but there is a sense that the worst is over, with some people already experiencing an improvement in circumstances.