Irish consumer sentiment recovered slightly in September but the trend remains fairly weak, according to the latest IIB/ESRI index.
Sentiment rose to 74.3 last month from the four-year low of 72.0 which was recorded in August.
The survey found that there was an improvement in the outlook on unemployment risks, with recent jobs announcements off-setting a 'spate' of redundancies.
The decision by the European Central Bank not to raise interest rates in September and the small drop in inflation below 5% are seen as key factors in the modest recovery.
However, the survey also shows that sentiment towards the Irish economy is at its lowest since September 2003, with nervousness over the construction industry the major root cause of this finding.
Commenting on the figures, Austin Hughes of IIB Bank, said: 'The small improvement in sentiment in September is a welcome respite after the sharp fall seen between May and August.
'However, the details suggest Irish consumers remain quite nervous. So, it is too early to suggest last month's modest rise signals a turning point in confidence.'
David Duffy of the ESRI echoed Hughes' assessment.
'Although there has been an improvement in sentiment, consumers remain cautious about the general economic outlook over the next year. Consumers continue to express concerns about the housing market and construction sector,' he said.
