CONSUMER CONFIDENCE improved during October by a “suspicious” amount, according to the latest sentiment index by KBC Bank and the Economic and Social Research Institute.

The index jumped from a reading of 53.3 to 63.7 last month, a rise that is “difficult to explain”, KBC and the ESRI said.

The increase prompted it to delay publication of the index in order to check its data and processes. However, this examination did not reveal any technical explanation or error that might account for the sudden improvement in consumers’ view of the economy and their own personal financial situation. “It would be wise to suspend definitive conclusions until we have another couple of months data, but in the absence of any error in the data, it seems that the October reading hints at some improvement in the mood of Irish consumers of late,” said KBC Bank economist Austin Hughes.

Mr Hughes pointed to an easing in the pace of job losses during the period of the survey, which was conducted before 950 redundancies were announced at Aviva, as a possible explanation.

He also cited the prospect of interest rate cuts and “non-economic influences” in the shape of the performance of Ireland’s football and rugby teams, that might distract from the “feelbad” factor.