Rising employment, strong consumer sentiment and recovering retail sales are all pointing to a solid recovery in the domestic economy.

IBEC has published its latest consumer monitor today and says the results prove the Government can deliver 300 million Euro worth of income tax reductions.

The group, which represents Irish businesses also wants to see a 100 Million Euro reduction in consumer taxes and the abolition of the pension levy.

However, Fergal O'Brien, IBEC's Head of Policy, admits the recovery is fragile: