Investment activity in Scotland fell to its lowest level in nearly three years during the second quarter of 2022.
The Scottish Friendly Investor Index tracks sales of adult investment ISA policies and the total value of these new policies among its UK-wide customer base, with quarterly activity measured against a base rate of 100.
In Scotland, the number of new policies opened in the second quarter fell by 3% on the previous quarter to reach the lowest level since the third quarter of 2019.
Sales of investment ISA policies in Scotland peaked in the fourth quarter of 2020 and remained high for much of 2021.
However, they have begun falling in recent quarters, along with the value of newly opened policies. The amount invested in new policies in the second quarter of this year fell 5% on the previous quarter and is down 26% from its high in the third quarter of 2021.
Across the UK, there is a sharp contrast between the value of new policies opened by men and women.
Over the past three months, the value of new policies among female customers remains well above pre-pandemic levels – up 22% on the fourth quarter of 2019.
In contrast, new policy values among male customers were 4% lower in the second quarter than in the final three months of 2019.
Meanwhile, the amount being invested by Scottish parents into new Junior ISA policies is up marginally by 1% on the first quarter of 2022.
Kevin Brown, media manager at Scottish Friendly, commented: “Household budgets in Scotland are under increasing pressure as living costs continue to rise and this is restricting families’ ability to save and invest.
“New policy sales have returned to pre-pandemic levels and with inflation yet to reach its peak we expect household saving to remain depressed for some time.
“As incomes are squeezed, it is important people have easy access to their spare cash, but if families are still saving for the long-term then it’s crucial that they try to protect their wealth from the devaluing effects of inflation.”
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