According to a Florida Atlantic University (FAU) survey released Monday, Hispanic’s trust in the U.S. economy plummeted in the second quarter of the year, falling from 92% to 78.3% —mainly due to rising inflation.
According to the Florida Atlantic University Business and Economics Survey Initiative (FAU BEPI) at FAU’s College of Business, this deteriorating economic outlook is due to fears of escalating inflation and an impending recession.
“Hispanic consumers have remained relatively optimistic about their financial situation, despite continued inflation, but patience is starting to wane,” Monica Escaleras, director of FAU BEPI, said.
It is clear to Escaleras that “four decades of high inflation and constant predictions of an impending recession are affecting Hispanics’ views on their finances and the U.S. economy in general.”
Regarding Hispanics’ views on their finances, only 56% said they are better off financially than they were a year ago, down from 65% in the first quarter and 59% in the fourth quarter of 2021.
In addition, 71% expect to be more optimistic about their financial situation in one year, compared to 73% in the first quarter, 70% in the fourth quarter of 2021, and 74% during the second quarter of 2021
Only 37% think this is a good time to buy big-ticket items, down from 50% in Q1 and 53% in Q4 2021.
And only 43% said they expect the country to experience good business conditions in 2023, compared to 55% in the first quarter and 51% in the fourth and second quarters of 2021.
Regarding the long-term economic outlook, 51% expect business conditions to be favorable in five years, in contrast to 61% in the first quarter, 53% in the fourth quarter of 2021, and 59% in the same quarter last year.
The consumer price index rose 9.1% last June from a year earlier, meaning inflation increased at a pace not seen since 1981, the Bureau of Labor Statistics reported last week.
The FAU survey is based on a sample of Hispanic adults collected between April 1 and June 30. The margin of error was +/- 4.41 percentage points.