Consumer sentiment improved in October as tax cuts and increased spending in Budget 2024 helped ease consumer gloom, a survey showed on Tuesday.

The Credit Union Consumer Sentiment index climbed to 60.4 this month from 58.8 in September, a six-month low. The index stood at 77 in February 2022, before Russia’s invasion of Ukraine, and dropped to a 14-year low of 42.1 in September 2022.

“The broad tone of Irish consumer sentiment remains cautious, as cost-of-living concerns remain elevated and nervousness about the outlook for jobs has increased,” the Credit Union said in a statement.

However, it said Budget 2024 measures seem to have encouraged some improvement in household spending plans in October.

The €14 billion budget package included a range of one-off payments, such as three electricity credits worth €450; a winter fuel allowance lump sum of €300; a €200 winter living alone allowance; a Christmas bonus for welfare recipients; and €250 million in one-off business supports.

The one-off payments have been criticised by opposition parties for lacking “vision” and “ambition”.

The funding allocated to health services next year has also prompted criticism of the Government, and has seen a recruitment freeze implemented on some healthcare roles.

Minister for Public Expenditure Paschal Donohoe has insisted the €22.5 billion allocated to the Department of Health will not be revisited.