Consumers were less optimistic about the economy last month than in January, according to the latest sentiment index from KBC bank and the ESRI.

Despite consumer confidence reaching a two year high in January at 64.6, that dropped again in February to 59.4.

It is believed the drop is down to the arrival of household and post-Christmas bills and the end of January sales.

Austin Hughes is Chief Economist with KBC Bank.

“What caused the decline in February is that the sales ended and people got their bills” he said.

“But what we are seeing is that the underlying trend and sentiment is still moving very marginally higher”.