A survey which measures how consumers feel about the economic outlook rose strongly this month to reach a 14-month high.
The consumer sentiment index, compiled by KBC Ireland and the ESRI, recorded 53.4 in June, up from 45.5 in May. The rise was mainly due to a higher level of optimism about the months ahead.
The forward-looking part of the index rose from 23.8 in May to 39.1, but the index which measures current conditions fell slightly - from 77.7 to 74.6.
KBC Ireland economist Austin Hughes described the rise as 'very surprising', as it came in a period in which the impact of higher income levies was felt in pay packets and election results suggested considerable dissatisfaction with the Government.
He said the current index was showing that consumers were still fairly nervous, but had taken some encouragement from signs of economic improvement abroad and a stabilisation of some economic figures at home.
Mr Hughes said the sharp rise in June could be at least partly reversed over the next couple of months, and pointed to the three-month average figure as a better indicator of the trend. It rose from 45.5 in May to 48.5.
He also pointed out that the current level is still well below the average of 93.9 since the survey began, adding that consumers now appeared 'slightly less terrified'.
