Irish consumers are now more optimistic about the economy than at any time since the recession began.

The latest Consumer Sentiment Index from the ESRI and KBC says sentiment is now at its highest level since February 2006.

The overall index increased in September to 92.8 from 87.1 in August - while the three month moving average rose to 89.8 in September, from 85.9 in August.

Commenting on the results, Ciara Morley of the ESRI said, "The increase is broadly based, being driven by improving expectations for the year ahead and improving perceptions of the current economic environment."

"The index of current economic conditions increases to 103.3, from 98.3 in August. After a brief drop in August, most likely due to the end of the summer sales, households are now more positive about the current buying climate," she added.

The new index also shows Irish consumers are now more positive about the future than anyone else in the Eurozone.

Austin Hughes is an economist with KBC Bank. He says the index shows consumers are now seeing a turning point in the economy.