The index rose from 85.8 to 87.2, enough to push Irish consumer confidence to a two-year high.

KBC Bank economist Austin Hughes said the results suggest what he described as the shadow of the pandemic  gradually lifting from the economy.

He said consumers are becoming less concerned about their current circumstances and less fearful about the future.

“This is further suggested by the fact that June marks the fifth successive monthly increase in the KBC Bank Consumer Sentiment Index, the first time that has happened since the beginning of 2007,” Mr Hughes said. 

Consumers have had their mood lifted by the phased reopening of economic activity.

This is despite long-lasting concerns about Brexit that predated the pandemic.

There was a marginal improvement in thinking on the jobs market in June.

However, concerns about “scarring” impacts on the employment prospects of those in areas not yet opening may have dampened this element.

And the announcement during the survey period of the phased reduction and ending of PUP and other pandemic supports is seen as behind the weakening of expectations for household finances through the coming year.

Talk of the possible need for future tax increases, increasing housing costs and growing global concerns about inflation may also have contributed to this element’s notable divergence from the rest of the survey in June.

Consumers were asked what they feel are the main problems the Irish economy could face through the next three years, with inadequate supply of housing topping the list.

The second most prominent concern relates to rising living costs.

Concerns about Government borrowing and a further pandemic warranted identical amounts of concern.