CONSUMER SENTIMENT HAS risen to a six year high, according to the latest KBC Bank/ESRI survey.

The report states Ireland’s consumer confidence index increased to 73.1 in September from 66.8 in August.

The index of current economic conditions also improved to 86.0 in September from 83.3 in August, the fifth consecutive month of increase.

Growing confidence

Commenting on the results Kevin Timoney of the ESRI said September’s results reveals “growing confidence amongst consumers” compared to September last year and August this year.

He said the three month moving average continued its increase to 69.4, which is the highest reading since November 2007.

Mr Timoney said that consumers seemed to be anticipate “some improvement in the domestic economy over the coming year. The index of consumer expectations increased strongly from 55.7 in August to 64.4″.

Austin Hughes of KBC Bank Ireland said:

The size of the jump in consumer sentiment in September is surprising but it seems broadly consistent with a gradually improving trend in confidence of late.

The Irish consumer is still cautious and cash constrained but, importantly, also appears to sense that the economic news is getting a little better and hinting at a somewhat brighter future…

He said that September saw more positive than negative views on the economic outlook which is the first time this has happened since February 2006.  He added that the data does not suggest that consumers are expecting “a return to the boom,” but added:

Our best guess is that recent positive news on jobs and property prices have encouraged a view that Irish economic prospects are now beginning to improve…

Read: Consumer confidence is up, but disposable income is down, says report>