Figures released by IIB Bank and the ESRI show that consumer sentiment rose sharply in November, recording 78.2, its highest level since July 2002.
The index stood at 69.4 in October, and the monthly rise was the biggest in the survey's eight-year history, though IIB economist Austin Hughes warned against exaggerating the significance of the improvement.
He said the rise was mainly due to a marked easing in pessimism about the general economic outlook and diminishing fears about the threat of substantial job losses.
A breakdown showed that the index of current economic conditions improved marginally, but the expectations index jumped from 58.1 in October to 72.6.
David Duffy of the ESRI said the figures suggested 'cautious optimism', pointing out that 46% of consumers still expect the economic situation to worsen, while 62% see unemployment rising further.
Austin Hughes added that the number of consumers who felt now was not a good time to make major purchases rose from 20% to 26%, attributing this to concern about interest rate rises.
