Consumer confidence among U.S. Hispanics plummeted in the second quarter of 2022 amid fears of rising inflation and a looming recession.
The Hispanic Consumer Sentiment Index dropped to 78.3 from 92 in the first quarter, 86.7 in the fourth quarter of 2021, and 90.8 for the same quarter last year, according to the Florida Atlantic University Business and Economics Polling Initiative (FAU BEPI) in FAU’s College of Business.
“Hispanic consumers have remained relatively optimistic about their financial situations despite continued inflation, but patience is beginning to wane,” said Monica Escaleras, Ph.D., director of FAU BEPI. “It is evident that four-decade-high inflation and consistent predictions of an impending recession are affecting Hispanics’ views of their personal finances and the U.S. economy in general.”
FAU BEPI asked five questions of 493 respondents, and they displayed declining optimism in all five.
Regarding Hispanics’ views on their personal finances, only 56 percent said they are better off financially than a year ago, down from 65 percent in the first quarter, 59 percent in the fourth quarter of 2021, and 63 percent in the same quarter a year ago.
In addition, 71 percent expect to be more optimistic about their financial situations in one year, compared to 73 percent in the first quarter, 70 percent in the fourth quarter of 2021, and 74 percent during the second quarter of 2021. Only 37 percent think it is a good time to buy big-ticket items, down from 50 percent in the first quarter, and 53 percent in both the fourth quarter and second quarter of 2021.
As for Hispanics’ economic outlook of the U.S. economy, only 43 percent said they expect the country to experience good business conditions in the upcoming year, compared to 55 percent in the first quarter and 51 percent in both the fourth quarter and second quarter of 2021. In terms of the long-run economic outlook, 51 percent expect business conditions to be favorable in five years, compared to 61 percent in the first quarter, 53 percent in the fourth quarter of 2021, and 59 percent in the same quarter a year ago.
The U.S. Consumer Price Index increased 9.1 percent in June from a year earlier, meaning inflation rose at a rate not seen since 1981, the U.S. Bureau of Labor Statistics reported last week. Costs for gas, food, housing, electricity, medical care and new and used cars all are increasing, the data showed.
The FAU poll is based on a sampling of Hispanic adults from April 1 to June 30. The margin of error was +/- 4.41 percentage points. The survey was administered using both landlines via IVR data collection and online data collection using Dynata. Responses for the entire sample were weighted to reflect the national distribution of the Hispanic population by region, gender, age, education and income, according to latest American Community Survey data. The polling results and full cross-tabulations can be viewed here.
Original source can be found here.
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