A joint survey by the ESRI and KBC Bank shows consumer sentiment has risen to a 7-year high.
The index rose to 87.2 in April from 83.1 in March, pushing it to its highest level since January 2007.
It found the index of current economic conditions increased to 97.0 from 90.4 last month, with households more positive about their finances and the current buying climate.
While the index of consumer expectations also improved - increasing to 80.6 from 78.1 in March.
The ESRI says that improving expectations reflect more positive perceptions of the economic outlook for the next year.
KBC says the rise is down to a renewed sense of optimism in the Irish economic outlook and improved employment figures.
However the Chief Economist with KBC Bank, Austin Hughes, says the numbers are encouraging but there is no room for complacency.
He says that while the results point towards a broadly-based improvement in economic conditions people must be careful in interpreting how good current conditions might be.
