However, growing apprehension about the broader macroeconomic environment tempered the overall optimism, according to a survey released on Monday.

The Credit Union Consumer Sentiment Index rose to 74.9 in January, up from 73.9 in December. While this marks a slight improvement, the index remains well below its long-term average of 84.3. It also represents only a marginal increase from the 74.2 recorded in the same month last year, highlighting the lingering challenges faced by consumers.

Sentiment regarding the general economic outlook and job prospects weakened compared to December, indicating that broader economic uncertainties continue to weigh heavily on consumers’ minds.

“The data suggests that while consumers are beginning to feel some relief from the pressures of the cost-of-living crisis, caution still dominates their financial behavior,” said David Malone, chief executive of the Irish League of Credit Unions. “The pullback in spending plans signals a cautious approach as households remain wary of potential economic headwinds.”

This cautious optimism reflects a delicate balancing act for consumers, who are navigating a period of improving personal financial conditions against the backdrop of persistent concerns about economic stability and job security.