Hispanics’ Consumer confidence is slightly stronger in 2023

Hispanics in the United States feel more optimistic about their financial situations as they go into 2023. The fourth quarter Hispanic Consumer Sentiment Index (HCSI) is at 85.3, which is 11 points higher compared to the third quarter score of 74.3. The HCSI finished lower in the fourth quarter compared to the first quarter of 2022 but higher than the second and third quarter. The same trend is true for the general population’s consumer confidence index published by the University of Michigan.

Overall, the majority of Hispanics are more optimistic about their financial situations going into 2023. Below are the detailed results of the five questions used to generate the Hispanic Consumer Sentiment Index:

• In the fourth quarter, 56% of Hispanics said they are better off financially today than a year ago compared to 44% in the third quarter.
• Women are more optimistic of their current financial situation compared to men (57% vs. 43%).
• In the fourth quarter, 72% of Hispanics said they expect to be better off financially in the next year compared to 66% in the third quarter.
• Women are more optimistic of their financial situation in the future compared to men (79% vs. 67%).
• Regarding the short run economic outlook of the country, 56% of Hispanics said that they expect the country to experience good business conditions in the upcoming year compared to 44% in the previous quarter.
• Women are more optimistic of the short run economic outlook of the country compared to men (66% vs. 47%).
• In terms of long run economic outlook of the country, 53% of Hispanics said that they expect the economic outlook of the country to be good in the next five years which remains unchanged from the previous quarter.
• Men are more optimistic of the long run economic outlook of the country compared to women (54% vs. 53%).
• Overall, in the fourth quarter 45% of Hispanics think it is a good time to buy big ticket items compared to 40% percent in the third quarter
• Women are more optimistic of buying big ticket items for their home compared to men (48% vs. 43%).

Other key findings:

• Buying a House: In the fourth quarter 37% of Hispanics think it is a good time to buy a house compared to 26% in the third quarter.
• Buying a Car: In the fourth quarter, 42% of Hispanics think it is a good time to buy a car compared to 43% in the third quarter.
• Cost of living: In the fourth quarter, 78% of Hispanics said the cost of living has gone up compared to 81% in the third quarter.

The poll 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 466 respondents sampled between October 1 and December 31, 2022 and a margin of error of +/- 3.54 percentage points. Responses for the entire sample were weighted to reflect the national distribution of the Hispanic population by gender, age, education, and income according to latest American Community Survey data.