FAU BEPI: Economic Strain Hits Hispanic Households Hard in 3rd Quarter
Hispanic consumer confidence dropped in the third quarter of the year as uncertainty and increased prices placed added pressure on their budgets, according to a poll from Ģtvҳ’s Business and Economic Polling Initiative.
Hispanic consumer confidence dropped in the third quarter of the year as uncertainty and increased prices placed added pressure on their budgets, according to a poll from Ģtvҳ’s .
The Hispanic Consumer Sentiment Index read in at 71 in the third quarter, down from 81.2 in the second quarter. Overall, there was a decrease in optimism in all five of the questions used to generate the Hispanic Consumer Sentiment Index.
“Hispanic consumer sentiment dropped this quarter as households continue to feel the strain of rising cost of living,” said , Ph.D., director of the FAU Business and Economics Polling Initiative (BEPI). “While inflation has eased compared to its peak, prices for essentials like food, housing and insurance remain elevated, which continues to pressure family budgets.”
For the third quarter, 51% of Hispanics said they were better off compared to a year ago, down from 55% in the second quarter.
Concerning their future financial situations, 56% of Hispanics surveyed felt optimistic about their future financial situation, down from 64% in the second quarter. For the short-run economic outlook on the country, 44% of Hispanics said they expect the country to experience good business conditions in the upcoming year, compared to 47% in the second quarter.
In terms of the long-run economic outlook of the country, 44% of Hispanics are slightly more optimistic, down from 46% in the second quarter.
Only 39% of Hispanics felt it was a good time to purchase a big-ticket item, a drop from 45% in the second quarter.
“Many Hispanic consumers are also feeling uncertainty about the direction of the economy as job growth slows and interest rates stay high, making big purchases such as homes and vehicles less affordable,” Escaleras said.
The poll is based on a panel sample of 539 Hispanic adults over 18 years old. The survey was administered using both landlines via Interactive Voice Response data collection and online data collection using Dynata. Respondents were sampled between July 1 and Sept. 30 with a margin of error of +/-4.22 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 the latest American Community Survey data. Full results can be found .
-FAU-
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