Hispanics Less Optimistic on Economy Despite Slower Price Growth

Hispanic consumers’ optimism about the economy dropped in the second quarter of 2024, as households struggle with higher prices, according to a poll released by the Florida Atlantic University Business and Economic Polling Initiative (FAU BEPI).

The Hispanic Consumer Sentiment Index (HCSI) decreased to 68.3 in the second quarter, from 85.3 in the first quarter of 2024. The HCSI is also lower than in the fourth quarter of 2023 (76.3).

• Only 31% of Hispanics said they were better off financially than a year ago, compared to 59% in the first quarter of 2024.
• For the short run economic outlook of the country, 51% of Hispanics expect the country to experience better business conditions in the year ahead, down from 54% in the previous quarter.
• Thirty-eight percent of Hispanics are optimistic about the long run economic outlook, compared to 58% in the first quarter of the year.
• For big ticket purchases, only 24% of Hispanics felt it is a suitable time to make a large purchase, a decrease from 41% in the previous quarter.
• Only one of the five questions used to generate the HCSI saw an increase in optimism: 80% of Hispanics are more optimistic about their future financial situations, compared to 71% in the first quarter of 2024 and 68% in the last quarter of 2023.

“Prices may not be rising as rapidly as before, but this offers little comfort to Hispanic households who still see the overall Consumer Price Index is 18.7% higher than it was in February 2020,” said Monica Escaleras, Ph.D., director of BEPI in the College of Business. “The sticker shock of the past three years could leave a lasting impression on consumer behavior. For many, the price tags in supermarket aisles today, compared to two or three years ago, are significantly higher due to cumulative inflation over the last three years. This change is now deeply ingrained in their memories.”

Other key findings:

• Cost of living: 83% of Hispanics said the cost of living has gone up compared to 77% in the previous quarter and 78% in the last quarter of 2023.
• Buying a house: 39% of Hispanics think it is good time to buy a house compared to 32% in the in the previous quarter and 29% in the last quarter of 2023.
• Buying a Car: 44% of Hispanics think it is a good time to buy a car compared to 40% in the previous quarter and 35% in the last quarter of 2023.

The survey is based on a panel sample of Hispanic adults, 18 years of age and older. The survey was administered using both landlines via IVR data collection and online data collection using Dynata. There were 366 respondents sampled between April 1 and June 30, 2024 with a margin of error of +/-5.12 percentage points. Responses for the entire sample were weighted to reflect the national distribution of the Hispanic population by region, education, gender, age and income according to latest American Community Survey data.