Bloomberg Línea — Eight out of 10 Hispano-American consumers say they are not very optimistic about the US economy, according to a survey by the Florida Atlantic University Business and Economics Polling Initiative (FAU BEPI). However, Latinos represent a major spending force in that country.
Hispanics, who represent 19% of the US population, are also an important driver of the economy with billions of dollars in spending, in addition to generating $2.8 trillion a year, the equivalent of Mexico and Brazil combined.
However, the health crisis unleashed by Covid-19 and the subsequent inflation of the last year hit them harder than the rest of the population.
The survey, which covers the first quarter of 2023, reveals key parameters that reveal Latinos’ emotional state regarding the direction of the economy.
What are Latinos saying about the US economy?
- Fifty-four percent of the 444 respondents said they were better off financially than they were a year ago
- 47% of Hispanics said they expect the country to experience good business conditions in the coming year
- Regarding the long-term economic outlook, 50% of respondents were slightly less optimistic in the first quarter
- The number of Hispanics (37%) who thought it was a good time to buy a big-ticket item in the first quarter fell compared to the fourth quarter of 2022 (45%)
- However, Latinos are not losing hope, and 76% are more optimistic that their financial situation will improve during 2024
How do Latinos compare with non-Hispanics?
The discrepancies of the Hispanic and Latino community with respect to non-Hispanic citizens in the United States can also be seen in the choices they make when it comes to managing their spending.
A very particular characteristic revealed by a CivicScience survey is that Latinos prefer retail department stores for shopping. Leading the preferences are Target (63%); Walmart (59%); and Macy’s (49%).
While there is a high propensity for online shopping through Amazon, Latinos are slightly behind white citizens in their preferences: 65% and 68% respectively.
The brands Latinos choose also differ from other ethniciries. When it comes to sportswear, Under Armour and lululemon are their favorites. Among urban fashion brands, Old Navy stands out, and among luxury brands, Gucci.
Hispanic Americans are also very receptive to influencer referrals on social media when recommending a product (20% compared to 11% of whites), as well as to digital ads (26%) and comments and recommendations (42%), according to the survey.