CONSUMER sentiment rose sharply last month, completely reversing the drop recorded in December.
The KBC Bank Ireland/ESRI Consumer Sentiment Index rebounded to 64.2 in January from 49.8 in December
The bump in the latest KBC Bank Ireland/ESRI Consumer sentiment index was attributed to more positive news about the Irish economy, public respite from the doom and gloom over Christmas and the effect of the festive sales.
It is also believed that fears among the public about the impact of the budget were quelled.
Austin Hughes of KBC Bank said sharp changes in the index in recent months suggested that consumers were unsure about the health of the economy and nervous about their own finances.
“So, positive economic data and increased hopes for a debt deal with Europe seem to have become the focal point of the January survey,” Mr Hughes said.