Hispanic Consumer Confidence Declines Towards the End of the Year: Report

A new survey by the Florida Atlantic University shows that Hispanic consumer confidence in the economy has declined in the third quarter of 2023.

The Hispanic Consumer Sentiment Index (HCSI) decreased to 74.7% in this period, compared to 83.4% in the one prior. Four out of the five questions used to generate the index showed lower levels of confidence when compared to the second quarter of the year.

Some highlights indicate that in the third quarter of 2023:

-44% of Hispanics said they are better off financially than a year ago compared to 54% in the second quarter and first quarter.

-Although 65% are more optimistic about their future financial situation, the figure was 72% in the second quarter and 76% in the first one.

-In terms of short-term future economic prospects, 49% of Hispanics said they expect the country to experience good business conditions in the next year, compared to 51% in the second quarter and 47% in the first quarter.

-As for the long term, 51% of Hispanics are more optimistic compared to 54% in the second quarter and 50% in the first quarter.

Other relevant data shows Latinos' outlook on key economic issues:

Most Hispanics continued to say that the cost of living has gone up compared to last year, although the figure is slightly lower than in the rest of 2023. 78% of those surveyed considered this to be the case, while 83% said so in the second quarter and 80% in the first one.

Moreover, 33% of Hispanics think it is a good time to buy a house at the moment. 39% thought it was a good time during the second quarter and 41% did so in the first one.

Regarding other significant purchases such as a car, the study indicates that less than half of Hispanics interviewed (42%) consider that it is a good moment to buy one compared to 44% in the second quarter and 45% in the first.

The decline in Hispanic consumer confidence now shows a drop of more than 10 percentage points compared to the last quarter of 2022, when the figure was 85.3%. It decreased to 80.2% in the first three months of the year and, even though it increased in the second quarter to 83.4%, it resumed its downward slope in the third quarter.

The survey is based on a panel sample of Hispanic adults, 18 years of age and older. There were 412 respondents sampled between July 1 and September 30, 2023.