Latino Economic Confidence Index.

La Agencia de Orcí & Asociados and the New America Alliance, the Washington D.C.-based non-profit organization of American Latino business leaders, announced the results of the first-ever U.S. Latino Economic Confidence Index (LECI).

While a majority of the survey respondents for the LECI felt that current economic conditions for U.S. Latinos mirror those faced by the general market, 82% of Latino leaders felt positive about business conditions and Latino consumer spending patterns six months hence.

” This survey gives an accurate read on how Latino leaders and influencers are gauging future economic conditions in the U.S.,” states Hector Orcí, CEO and Co-chair of La Agencia de Orcí & Asociados. “This is valuable information for businesses and marketers who are interested in addressing the active Latino marketplace. For example, Univision recently documented that about 17 percent more advertisers have signed advanced deals for its new season amid growing interest in reaching U.S. Latinos.”

Through their responses, survey participants explained how Latino economic confidence differs from that of the general market. Respondents to the LECI survey indicated that U.S. Latinos are less affected than the general market by influences such as the stock market and foreign affairs. However, U.S. Latinos are heavily affected by their lack of confidence in leadership from politicians, large companies and the Catholic Church.

“While Latinos who invest in the stock market have experienced loses like most investors, the majority of Latinos have not been affected by this loss because they are not yet participating as investors,” stated J. Fernando Barrueta of Hispanic College Fund Inc in Washington D.C.

Many of those surveyed felt that the U.S. Latino’s work ethic is a major factor in determining how U.S. Latino unemployment levels were less affected by recent economic conditions than the general market. In addition to the fact that many Latinos are employed in the service industries, survey respondents explained that the Latino culture encourages individuals to “try harder,” “find another job quickly,” and “contribute to your family’s economy.”

As far as the future goes, many survey respondents felt the service and manufacturing industries will be the industries most likely to pick up quickly once the economy starts to improve, thus, raising overall employment for Latinos.

“In the industries seriously affected by recent economic conditions, such as telecommunications and technology, there is relatively low Latino employment at the senior executive level,” states survey respondent Victor Arias, Jr. of the executive search firm Spencer Stuart in Dallas. “On the other hand, many industries, especially financial services and consumer products, are increasing their focus on the Latino consumer and, hence, are hiring more Latinos at senior levels.”

Many survey respondents did address the fact that, while recent employment conditions may have hit Latinos hard, many layoffs are based on seniority and not work ethic. Since Latinos are recent entries to many industries, they have shorter tenure on the job.

More About the LECI

The U.S. Latino Economic Confidence Index (LECI) is an organized effort to collect accurate measurements on current and future U.S. Latino consumer attitudes and economic trends. La Agencia de Orcí & Asociados and the New America Alliance partnered for this venture in order to provide valuable insight into the opinions of U.S. Latinos – who in 2000 comprised 14 % of the U.S. population and currently represent as much as $630 billion in annual spending power.

The LECI was created by surveying more than 800 New America Alliance members and associates. The survey recipients were business leaders and influencers in the U.S. Latino community and, thus, highly qualified to comment on U.S. Latino consumer trends. This first survey will serve as the base information from which future survey data will be formalized in the context of an ongoing index. The LECI is modeled after other general market surveys, such as the Conference Board’s monthly Consumer Confidence Index. Survey participants were asked to respond “positive,” “neutral” or “negative.” Respondents were asked to evaluate how they personally felt about business conditions, employment and spending patterns, as well as predict how other Latinos felt about such topics.

“The New America Alliance has supported this important study as part of its commitment to gauge and promote the advancement of the American Latino community,” states Moctesuma Esparza, Chair of the Board for the New America Alliance. “To help Latinos succeed in this country, we must be able to accurately assess their attitudes and expectations as consumers.”