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Confidence on the up among Scottish consumers

Confidence is returning among Scottish consumers.
Confidence is returning among Scottish consumers.

Scottish consumer confidence returned to pre-pandemic levels during the second quarter of this year, according to the latest research by professional services giant Deloitte.

The firm also reported a leap in optimism over the state of Scotland’s economy.

The Deloitte Consumer Tracker showed a 7% rise in confidence over the April to June period compared to the previous three months, taking it to its highest level since the third quarter of 2019.

Positive sentiment over the Scottish economy grew by 22% between the first and second quarters of this year.

Spending rising as restrictions ease

Discretionary spending in Scotland increased by 14%, with 80% of respondents to the survey saying they had saved money during the pandemic.

Asked about future plans over the coming year, 43% said they intended to spend on holidays and hotels and around a third were planning to eat out in restaurants as restrictions continue to ease.

Gavin Hood, advisory corporate finance partner at Deloitte, said: “The leisure and hospitality industry has had a torrid time, but there are encouraging signs that the stronger level of optimism amongst consumers could translate into increased leisure spending activity in the UK.

The lifting of restrictions, improving weather and the continuation of the summer of sport, could see an acceleration of leisure sector spending during the next few months.”

He continued: “The challenge for business leaders, however, will be how to juggle scarce staffing resource to meet this increased demand.

Gavin Hood.

“Beyond this, the question remains as to whether the boost in confidence and spending will be enough to sustain the leisure sector when government support is removed later in the year.”

Deloitte’s analysis was based on responses from more than 300 people in Scotland and was carried out between June 18-21, as moves to the lowest levels of restrictions were postponed north of the border.

The research also found that respondents’ confidence in their job security had risen 6%.