New figures show that the mood of Irish consumers improved in December, but remained well below the levels recorded at the end of 2005.
The IIB/ESRI consumer sentiment index rose from 87.9 in November to 89.8, the fourth increase in a row. But the index stood at 98.8 in December last year.
A breakdown showed that the index which measures people's perception of their current situation fell from 95.2 to 92.8. The expectations index, which is based on perceptions of consumers' future financial situation and the economic outlook, moved up from 82.9 to 87.7.
IIB economist Austin Hughes said the figures suggested that the expected impact of a generous Budget outweighed concerns about interest rate rises. He said the fall in the index related to the current buying climate suggested many consumers were still cautious in the face of interest rate worries and higher energy costs.
