Consumer Confidence Deteriorating Among Hispanics in U.S.
Four out of five Hispanics said the cost of living has gone up, a 21 percent rise since the first quarter. This perception, along with increasing concerns over their level of debt, rising gas prices and interest rate hikes, may explain why only 51 percent said they think it is a good time to buy a house (down from 59 percent in the first quarter), and only 49 percent said it is a good time to buy a car (down from 62 percent).
Consumer confidence among Hispanics in the U.S. has deteriorated compared to the beginning of the year, as concerns have grown over the perceived rising cost of living, according to a new national consumer sentiment index conducted by the (FAU BEPI) in FAU’s .
The Hispanic Consumer Sentiment Index (HCSI), taken from April through June, stands at 86.4, down more than 12 points from the first quarter of 2018 when the Index stood at 98.9, which was the highest score since the index went to a quarterly count in January 2017. The index continues to trail the 98.2 score for the overall U.S. population as published in June by the .
Overall, only 56 percent of Hispanics indicate that they are financially better off today than a year ago, down 13 points from the first quarter of 2018. Women (66 percent) are more optimistic about their current financial situation compared to men (46 percent).
The percentage of Hispanics who indicated they will be better off a year from now dropped six points to 72 percent in the second quarter. Younger Hispanics between 18-34 years old (81 percent) are most optimistic about their future financial situation compared to the other age groups (68 percent of 35-54 year olds and above 58 percent of those 55 and over).
Hispanics’ short-run economic outlook for the country also took a dip, with only 50 percent saying they expect the country as a whole to experience good business conditions in the upcoming year, down 11 points compared to the first quarter. In addition, only 52 percent of Hispanics think it is good time to buy big-ticket items, compared to 69 percent in the first quarter.
Four out of five Hispanics said the cost of living has gone up, a 21 percent rise since the first quarter. This perception, along with increasing concerns over their level of debt, rising gas prices and interest rate hikes, may explain why only 51 percent said they think it is a good time to buy a house (down from 59 percent in the first quarter), and only 49 percent said it is a good time to buy a car (down from 62 percent).
“Hispanics are less optimistic of their financial situation and the short-term economic outlook of the country,” said , Ph.D., director of FAU BEPI. “They’re concerned about what they perceive as a rising cost of living, gas prices and interest rates.All of this leads Hispanics to be less eager to consume more.”
U.S. President Donald Trump’s approval rating among Hispanics dropped from 37 to 33 percent in the second quarter of 2018. Of those surveyed, 14.5 percent identified themselves as Republicans, 36.1 percent Democrats, 19.8 percent Independents and 29.6 percent were not registered.
The survey was conducted nationally from April 1 to June 30. The random polling sample consisted of 850 Hispanics, 18 years of age and older, with a margin of error of +/- 4.0 percent. The survey was administered using both landlines via IVR data collection (50 percent) and online data collection (50 percent) using . Responses for the entire sample were weighted to reflect the national distribution of the Hispanic population by region, education, gender, income and age according to latest American Community Survey data.
For more information, polling results and full cross-tabulations, visit business.fau.edu/bepi or contact , Ph.D. at 561-297-1312 or BEPI@fau.edu.
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