Ireland’s consumer confidence index rose to 63.2 in August 2026 from a revised 61.6 in July, marking a second consecutive monthly increase and its highest level since February. The improvement reflected less pessimism about the economic outlook, easing inflationary pressures, a resilient labor market, wage growth and expectations of further European Central Bank rate cuts. Consumers also became somewhat more positive about their finances and more willing to make major purchases, although both financial expectations and spending intentions remained cautious. The index stayed below its historical norm, cited in the latest account at around 70, and below the long-term average of 83.1 and five-year average of 64.1 cited in the earlier record. The recovery follows a fall from 65.2 in February to a 40-month low of 53.3 in April amid fuel-price increases linked to the ongoing Middle East conflict. A sustained improvement could support household spending, which accounts for roughly one-third of Ireland’s economic activity, but higher mortgage and food costs, the delayed impact of past rate increases and any renewed inflation could undermine confidence.