Consumer confidence in the economy rose in September as a result of a more optimistic assessment of future prospects, rather than current conditions, an IIB Bank/ESRI consumer sentiment index found today.
The October consumer sentiment reading increased from 80.5 in September to 85, despite consumers feeling relatively negative about current economic conditions.
Commenting on the results the ESRI's David Duffy said the "main impetus to the improvement in sentiment came from a more optimistic assessment of future prospects, rather than current conditions".
He said while consumers had a negative view of the current economic situation "they have become more optimistic about overall economic prospects, employment prospects and their future financial prospects."
Austin Hughes, chief economist IIB Bank said despite confidence about the future the "three-month moving average for the sentiment index continues to weaken suggesting that any recovery in confidence remains tentative."
"It's not surprising that consumer sentiment bounced after last month's sharp drop but the October increase was less than half the fall seen in September. So the underlying trend remains quite negative".
He said September saw some easing in oil prices and the release of extraordinarily good Irish employment figures.
Mr Hughes noted that consumers remain concerned about their financial situation with rising inflation eating into living standards.