Consumer sentiment rose for the second month in a row in June, according to the latest monthly sentiment indicator from KBC Bank Ireland.

The increase was relatively modest, but it was the first time that back to back monthly improvements in sentiment have been recorded since mid-2017, the report says.

The consumer sentiment index rose to 90.7 in June from 89.9 in May.

The uplift in sentiment came against the backdrop of a positive news flow on the Irish economy. 

Brexit risks, while still substantial, may have seemed slightly less immediate as the race to become the next leader of the UK Conservative began.

Similar sentiment metrics for the US, the Euro Area and the UK all weakened notably in June.

This would suggest that Irish consumer confidence was boosted by domestic influences.

"Given the significant weakening in Irish consumer sentiment since last summer, consumers here may feel that they have now priced in as much personal pain as they might reasonably expect from a still very uncertain Brexit process," Austin Hughes, chief economist with KBC Bank Ireland explained.

"A renewed focus on the risk of a 'hard Brexit' from October 31st may see sentiment sour again. However, in the near term, an element of Brexit fatigue may be causing consumers to switch attention away from such risks to the reality of healthy Irish economic conditions at present."

The continuing sequence of positive economic data which recently highlighted strong jobs growth and solid wage gains may be registering in the consumer mindset.

"To the extent that these data capture the circumstances of the typical consumer, they suggest a significant counterweight to the threat posed by Brexit," Mr Hughes said.