Swift resolution of the Iraq war boosted consumer confidence last month, latest figures show. The IIB bank/ESRI consumer sentiment index climbed to 68.4 in April from 62.8 in March, when anxiety over military build-up in the Gulf appeared to spread to the high street.
Consumers were increasingly optimistic about long-term economic prospects last month, with the forward-looking expectations index surging to 56.9 from 49.2, and the index of current economic conditions up to 85.5 from 83.
Buoyant consumer sentiment echoes renewed confidence among the US public since the fall of Baghdad, analysts suggested. "The extent of the rise owes a great deal to relief at the end of the war in Iraq," said Mr Austin Hughes of IIB Bank.
"However Irish consumer sentiment had not been as hard hit by war worries as corresponding confidence measures in most other economies. So, this April reading may also hint at an underlying improvement in domestic economic conditions."
However, there was evidence that consumers remained cautious about job prospects, said Mr David Duffy of the ESRI.
"Their response to a question on the outlook for the labour market indicates that they remain cautious about job prospects, with a more subdued improvement in this component of the indices."