New figures published by KBC Bank Ireland, and the ESRI show that Irish consumer sentiment spiked in December - hitting its highest point in seven years, and the second highest point since 2006.

The index was at 90.5 in December - up more than five points on the previous month.

ESRI.ie

The Consumer Sentiment Index (CSI) comprises of two sub-indices, one measuring how consumers view the current economic situation - and one that measures how they view the economy's future prospects in the next 12 months. 

Commenting on the results Ciara Morley, research assistant at the ESRI, said: “Of the five components in the Consumer Sentiment Index all but one has shown improvements in December. The most notable increase is in how consumers view their future household finances for the next 12 months with a 12 percent rise over November.”

The movement away from austerity in Budget 2015, low inflation rates, and an improvement in employment prospects are being cited as factors that have made consumers feel more confident.