Irish Consumer sentiment improved in September but is still far from levels reached in the heady days of the Celtic Tiger.
The IIB/ESRI consumer sentiment index rose to 95.5 last month from 93.6 in August.
Commenting on the results Mr David Duffy of the ESRI said that although results indicate that consumer sentiment improved in September, consumers remain cautious about current conditions.
Mr Duffy said the decline in the current index is due to consumers becoming less positive about the current buying climate and their current financial situation.
Mr Austin Hughes, of IIB Bank, noted that the rise in the index in September suggests the trend in consumer sentiment is still upwards but the pace of improvement is not spectacular. "We think this is consistent with an economy that is healthy but not hot," he said.
The IIB/ESRI Consumer Sentiment index is based on the answer to five questions,two of which relate to general economic conditions and three of which relate to households assessment of their own financial situation.
In September, answers to both 'macro' questions improved while answers to all three questions relating to household finances weakened.
The message emerging is that Irish consumers are aware of improving economic conditions of strengthening activity and healthier job prospects though this feeling is not yet been felt in consumers' pockets.
"Irish consumers are not seeing the sort of income gains that would spark a feel-good factor," according to Mr Hughes but the new Minister for Finance may go some way to refilling the punchbowl in his Budget on December 1st.