Hispanic Index of Consumer Sentiment

Second Quarter 2021

HISPANICS CONSUMER CONFIDENCE INCHED DOWNWARD IN THE SECOND QUARTER

The Hispanic Consumer Sentiment Index (HCSI) in the second quarter of 2021 finds that the Hispanic population’s consumer confidence in the U.S. has slightly decreased compared to the first quarter. Specifically, the Hispanic Consumer Sentiment Index (HCSI) decreased from 92.0 in the first quarter of 2021 to 90.8 in the second quarter. The HCSI is around 5 points higher than the general population’s second quarter number of 85.6 as published by the University of Michigan.

Overall, there is slight decrease in optimism in three out of the five questions used to generate the Hispanic Consumer Sentiment Index when compared to the first quarter of 2021. Below are the detailed results:

• In the second quarter of 2021, 63% of Hispanics said they are better off financially than a year ago compared to 59% in the first quarter and 47% in the last quarter of 2020.

o  Hispanics between 18-34 year old (74%) and those between 35-54 year old (56%) are more optimistic of their current financial situation than those above 55 years old (51%).

• In the second quarter of 2021, 74% of Hispanics are slightly more optimistic of their future financial situation compared to 73% in the first quarter and 62% in the last quarter of 2020.

o  Hispanics between 18-34 years old (82%) and those between 35-54 years old (75%) are more optimistic of their current financial situation than those above 55 years old (55%).

• Regarding the short run economic outlook of the country, 51% of Hispanics said they expect the country as a whole to experience good business conditions in the upcoming year compared to 54% in the first quarter and 49% in the last quarter of 2020.

o  Hispanics between 18-34 years old (57%) and those between 35-54 years old (52%) are more optimistic of the short run economic outlook of the country than those above 55 years old (38%).

• In terms of long run economic outlook of the country, 59% of Hispanics are slightly less optimistic year compared to 61% in the first quarter and 66% in the last quarter of 2020.

• In the second quarter of 2021, 53% percent of Hispanics think it is good time to buy big- ticket items compared to 54% percent in the first quarter and 37% in the last quarter of 2020.

Other key findings:

• Cost of living: 74% of Hispanics said the cost of living has gone up compared to 67% in the previous quarter.

• Buying a house: 50% of Hispanics think it is good time to buy a house compared to 55% in the first quarter of 2020.

• Buying a Car: 56% of Hispanics think it is a good time to buy a car compared to 64% in the previous quarter.

The survey 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 616 respondents sampled between April 1 and June 30, 2021 with a margin of error of +/- 3.95 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 latest American Community Survey data. 

First Quarter 2021

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HISPANICS' CONSUMER CONFIDENCE SHARPLY INCREASES IN THE FIRST QUARTER

The Hispanic Consumer Sentiment Index (HCSI) in the first quarter of 2021 finds that the Hispanic population’s consumer confidence in the U.S. has sharply increased compared to the fourth quarter of 2020.

Specifically, the Hispanic Consumer Sentiment Index (HCSI) increased from 79.3 in the fourth quarter of 2020 to 92.0 in the first quarter of 2021. The HCSI is around 12 points higher than the general population’s first quarter number of 80.2 as published by the University of Michigan.

Overall, there is sharp increase in optimism in four out of the five questions used to generate the Hispanic Consumer Sentiment Index when compared to the fourth quarter of 2020. Below are the detailed results:

• In the first quarter of 2021, 59% of Hispanics said they are better off financially than a year ago, which is 12 percentage points higher (47%) than last quarter of 2020.

• • Hispanics between 18-34 year old (64%) are more optimistic of their current financial situation than those between 35-54 year old (55%) are those above 55 years old (55%).

•  In the first quarter of 2021, 73% of Hispanics indicated they will be better off over the next year compared to 62% in the last quarter of 2020.

• • Women are more optimistic of their future financial situation compared to men (76% vs. 70%).
  • Hispanics between 18-34 year old (75%) are more optimistic of their future financial situation than those between 35-54 year old (74%) are those above 55 years old (65%).

• Regarding the short run economic outlook of the country, 54% of Hispanics said they expect the country as a whole to

  experience good business conditions in the upcoming year compared to 49% in the fourth quarter of 2020.

• In terms of long run economic outlook of the country, Hispanics are less optimistic in the first quarter of 2021 compared to

  the fourth quarter of 2020 (61% vs. 66%).

• In the first quarter of 2021, 54% percent of Hispanics think it is good time to buy big ticket items compared to 37% percent in the fourth quarter of 2020.

• • Men are more optimistic that it is a good time to buy big ticket than women (60% vs. 49%)

Other key findings:

• Buying a house: 55% of Hispanics think it is good time to buy a house compared to 53% in the last quarter of 2020.

• Cost of living: 67% of Hispanics said the cost of living has gone up compared to 59% in the last quarter of 2020.

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 542 respondents sampled between January 1 and March 31, 2021 and a margin of error of +/- 4.2 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 latest American Community Survey data. The polling results and full cross-tabulations can be viewed on the FAU BEPI website.