Optimism about the outlook for the jobs market has led to an improvement in consumer sentiment this month.
The IIB Bank/ESRI consumer sentiment index for June recorded 99.6, up from 97.4 in May. The index of current conditions fell from 109.6 to 107.7, but the expectations index - which measures expectations for the months ahead - rose from 89.2 to 94.2.
The ESRI's David Duffy said the rise had been driven by a much more positive perception by consumers of the outlook for the labour market. IIB economist Austin Hughes attributed this to strong employment data released in early June.
But Hughes pointed out that consumers remained cautious, with less positive readings in some elements of the survey. He said this might reflect the French and Dutch EU referendum results, which painted the prospects for the European economy in a negative light.
The economist said the trend pointed towards more borrowing, with consumers feeling future income may justify a higher level of spending than current income will allow.
