Understanding Scotland Economy Tracker - May 2023
The most recent data from the David Hume Institute and Diffley Partnership’s regular economy tracker reveals a mixed picture of public opinion on the economy.
The economic outlook from Scots remains bleak with 62% thinking that general economic conditions will be worse in a years’ time (although this is down very slightly from 66% in February) and 45% think their personal financial situation will be worse in a years’ time (down from 48% in February).
However, while we have seen a reduction in the number of people thinking that things will be worse, optimism is not rising. Many Scots think that the economic outlook will remain the same over the next 12 months suggesting that they think that the costs and challenges they face are here to stay.
Is this a sign of people adjusting to a new normal?
In order to meet increased costs, many Scots are running down their savings, turning to credit and stopping paying into pensions:
4 in 10 Scots (42%) report having taken money out of their savings to
cover higher costs1 in 4 have used a credit card to make for purchases that they wouldn’t
usually1 in % have used ‘buy now pay later’ schemes to cover everyday
spendingA small but increasing number of Scots have stopped contributing to a
pension (7%)
Turning to high-cost borrowing options for everyday essentials can cause the accumulation of substantial debt which will affect people’s lives for many years to come.
The Understanding Scotland: economy tracker is produced in partnership between the David Hume Institute and the Diffley Partnership. The survey gathers economic attitudes and insights from more than 2,000 members of the Scottish adult population every 3 months to track changes over time.
Read more:
Press release - The cost of living is driving difficult choices.
Blog by Shona McCarthy - Budgeting to save a global asset.
Watch the event recording here.
