Introduction to Hispanic Consumer Sentiment
Consumer confidence among U.S. Hispanics is down. The Hispanic Consumer Sentiment Index from Florida Atlantic University dipped to 85.7 in the first quarter of 2025, down from the 89.6 in the last quarter of 2024.
FAU’s Business and Economic Polling Initiative reports declines in three of the five measures used to calculate the index.
Factors Influencing Consumer Sentiment
“Persistently high borrowing costs and everyday price pressures — together with talk of new tariffs and a possible recession — are weighing on household outlooks,” Monica Escaleras, chair and director of initiative, said in a statement. “These headwinds are keeping many Hispanic families cautious about the economic outlook in the United States.” The latest number is roughly at the midpoint between the index’s historic high and its historic low. The highest it has ever been is 105.9 in the third quarter of 2019. Lowest was 68.3 in the second quarter of 2024, Escaleras said via email. The first quarter 2025 result of 85.7 is marginally higher than it was in the first quarter of 2024, when it stood at 85.3.
Key Factors
There were declines in three forward-looking components of the index:
— Do you think that a year from now you (and your family living there) will be better off financially, or worse off? Better was at 64%, a decrease of 6 points.
— On business conditions in the country, do you think that during the next 12 months we’ll have good times financially, or bad times? Good was at 53%, down 8 points.
— Looking ahead, which would you say is more likely, that in the country as a whole we’ll have continuous good times during the next five years or so, or that we will have periods of widespread unemployment or depression? Good was at 52%, a decrease of 6 percentage points.
Demographics
Overall, survey results showed men were more optimistic than women on almost every economic question. For example, men (75%) were more likely than women (53%) to say things would be better financially in the year ahead. Women (47%) were much more likely than men (25%) to say things would be worse in a year. That was also reflected when looking at the Consumer Sentiment Index, which stood at 78.7 among women and 93.2 among men.
Other Questions
Answers were varied on three other questions. Is it a good time to buy a house? 51% said yes, compared to 41% in the last quarter of 2024. Is it a good time or a bad time to buy a vehicle? 41% of Hispanics think it is a good time to buy compared to 51% in the last quarter of 2024. Do you think the cost of living has gone up, gone down or stayed the same? 68% said it has gone up, compared to 78% in the last quarter of 2024.
Economic Environment
The fourth quarter of 2024 included Election Day. The first quarter of 2025 this year included the beginning of the Trump second presidency — but came before April 2, the day the president announced tariffs that sent the financial markets into turmoil. Many tariffs have been scaled back, but the import taxes on products from China have been dramatically increased. Together, they have created broad economic uncertainty and led to predictions of a recession.
The Index
The Business and Economics Polling Initiative, part of FAU’s College of Business, began polling Hispanics nationwide in 2014 to gauge consumer sentiment. The Hispanic index is modeled after the Consumer Sentiment Index for the overall population long produced by the University of Michigan. It has been calculating the quarterly index since 2018, Escaleras said via email. The most recent index is based on surveys of 542 Hispanic adults conducted online and through automated calls to people with landline telephones from Jan.1 through March 31.
Conclusion
In conclusion, the decline in consumer confidence among U.S. Hispanics as indicated by the Hispanic Consumer Sentiment Index is a significant economic indicator. The factors influencing this decline, including persistently high borrowing costs, everyday price pressures, and talk of new tariffs and a possible recession, are crucial for policymakers and businesses to consider. Understanding the demographics and other questions related to consumer sentiment provides a comprehensive view of the economic environment and its potential impact on Hispanic families and the broader economy.
FAQs
Q: What is the current Hispanic Consumer Sentiment Index?
A: The Hispanic Consumer Sentiment Index from Florida Atlantic University dipped to 85.7 in the first quarter of 2025.
Q: What are the key factors influencing the decline in consumer confidence?
A: The key factors include persistently high borrowing costs, everyday price pressures, and talk of new tariffs and a possible recession.
Q: How does the index vary by demographics?
A: Men are more optimistic than women, and there is a significant divergence among different age groups, with people 55 and older being more pessimistic than those who are younger.
Q: What is the Hispanic Consumer Sentiment Index based on?
A: The index is based on surveys of Hispanic adults conducted online and through automated calls to people with landline telephones.
Q: How often is the index calculated?
A: The index is calculated quarterly.
Originally Published: May 9, 2025 at 9:52 AM EDT
