Consumer sentiment rose again in July, according to the latest measure from KBC Bank Ireland and the ESRI.

Mid-summer sales, the 182 car registration plate, and the heatwave all contributed to the improved outcome.

The KBC Bank Ireland/ESRI consumer sentiment index rose to 107.6 in July from 102.1 in June, marking the strongest monthly increase since January and raising the index to its highest level since March.

However, the notable improvement in Irish consumer sentiment in July was in contrast to the euro area, where consumer confidence for the month was unchanged from June.

Meanwhile, US consumer sentiment slipping marginally and concerns about the political management of the Brexit process saw UK consumer confidence falling to its weakest level since February.

KBC Bank Chief Economist Austin Hughes said "while confidence has picked up as the Irish economy improved, an uncertain global economy and modest income gains mean Irish consumers are still careful about when and where they spend.

"The jump in Irish consumer confidence in July was at odds with weaker readings in similar indicators for the US and UK.

"While the sentiment survey is driven by the economic temperature, our sense is that exceptionally warm weather may have caused more Irish consumers to see the glass half full rather than half empty in July.

"Unfortunately, this suggests the prospect of  cooler sentiment and spending in coming months," he added.

Separately, the latest retail monitor from industry group Retail Ireland reports that trade was buoyed in the second three months of the year by the exceptionally good weather, which saw sales growth of almost 3.5%.

Grocery, DIY, hardware, and fuel all benefited from the better weather, while in the opening months of 2018 Storm Emma caused disruption to trade and losses were estimated to have run into the tens of millions of euro.