Tuesday, April 23, 2024

Report Finds Latinos Are More Pessimistic About Nation’s Finances

According to a quarterly study conducted by the Florida Atlantic University Business and Economics Polling Initiative (FAU BEPI) that randomly selected 500 Hispanics, Latinos are expressing uncertainty about the nation’s economic long-term forecast more than ever. Hispanic consumer sentiment is down 10 points from December of last year, and 57% said they expected bad times financially for the next five years.

“Hispanics feel with confidence that next year is going to be good, but maybe they feel uncertain about 5 years from now. Driving this weakness in Hispanic consumer sentiment is pessimism about where the country as a whole is heading.” said Dr. Monica Escaleras, the director of FAU BEPI, to NBC Latino.

President Trump’s approval rating among Hispanics is at 39%, and of those surveyed, 10% identified as Republicans, 42% identified as Democrat, and 39% as Independents. Almost 6 in 10 Latinos think the cost of living is going up and over half expect interest rates to go up. The study also found debt to be a major problem for 36% of Latinos.

“Hispanics are the fastest growing ethnic population in the U.S. so they are going to be affecting buying power; they are a driving force of goods and services. It’s important to follow their sentiment,” said Escaleras. “If they don’t feel confident, immediately they withdraw from spending.”

According to Nielsen, the buying power of Hispanics is expected to reach $1.7 trillion by 2020. With Hispanics rapidly becoming a powerhouse in the American economy, the results of this study, and other like-studies, are important when attempting to forecast the nation’s future consumer climate.

NBC News Latino