Household confidence rose in September but businesses sentiment was down, according to the latest Economic Pulse from Bank of Ireland.

The survey, which combines readings of confidence in both the consumer and business sectors, stood at 90.4 for the month.

This was down 3.3 points on August and the lowest reading for the year so far. 

Bank of Ireland noted that firms in the industry, services and retail sectors were less upbeat this month. 

The survey of 2,000 businesses found that many had scaled back their short-term expectations of activity. 

However sentiment in the construction sector rose considerably during the month, boosted by an improvement in order books and positive sentiment on the employment front. 

"While sentiment remains at a high level, Brexit has led to an increase in uncertainty, and a general softening in sentiment is evident when the recent readings are compared with those earlier in the year," Dr Loretta O’Sullivan, Group Chief Economist at Bank of Ireland, said.

"While we saw an overall lift last month, business sentiment is a little unsettled at the moment as firms continue to assess the impact,"  she added.

Meanwhile, a survey of 1,000 households showed an improved impression of economic developments over the past and coming year, though respondents took a less favourable view about their own financial prospects.

"The Consumer Pulse is showing that households are more positive about the economy, almost half expect unemployment to fall further while four in ten households are concerned about the tax burden," commented Dr O’Sullivan.

Most people also expect house prices to rise over the coming year - with 28% anticipating gains of over 5%.