Consumer confidence ‘still fragile’, says SRC

Shopping baskets

The Scottish Government has published its Retail Sales Index which shows a resumption of growth in the value of retail sales in the second quarter of 2015, albeit with retail sales growth flat over the past twelve months as a whole.

David Lonsdale, Director of the Scottish Retail Consortium, commented:

“The resumption of growth in retail sales in the second quarter of this year is heartening. However, with the value of retail sales over the past year as a whole decidedly flat this suggests a continuing fragility to consumer confidence in Scotland, despite lower prices in shops prices and average pay rises outstripping inflation.”

Lonsdale noted that prospects for retailers are ultimately determined by the state of the economy and their own ability to adapt and seize on the opportunities that arise.

He concluded: “However, these figures do bring into sharp focus big upcoming decisions which could affect disposable incomes and take home pay, notably the setting of the new Scottish Rate of Income Tax in next month’s Scottish Budget and the unveiling this autumn of the promised replacement of council tax. These decisions must support consumer spending and economic growth with greater certainty over how the amount of money in people’s pockets and indeed consumer spending more widely will be affected by these changes.”