The latest IIB/ESRI report shows that consumer sentiment stabilised in December, though there were signs that caution had affected Christmas sales.
The consumer sentiment index recorded 78.3, compared with 78.2 in November. A breakdown showed that the index of current economic conditions fell to 84.4 in December from 86.6. But the expectations index, which measures consumers' view of their future financial situation, moved up from 72.6 to 74.3.
The ESRI's David Duffy said the proportion of consumers who expected the unemployment rate to fall over the next year was at its highest since April 2002.
IIB economist Austin Hughes described the report as encouraging compared to more gloomy readings in other countries.
He said the only negative aspect was a drop in spending plans, which tallied with anecdotal evidence from retailers. Hughes said this might reflect anticipated heavy discounting in post-Christmas sales which led to consumers' postponing major purchases.
