Hispanics Divided Along Party Lines on Economic Outlook
As the nation approaches the inauguration of Donald J. Trump as the 45th President of the United States this month, Hispanic Republicans and Democrats differ greatly in their opinions about the economy.
As the nation approaches the inauguration of Donald J. Trump as the 45th President of the United States this month, Hispanic Republicans are optimistic about their personal finances and the country’s economic outlook, while Hispanic Democrats are feeling the opposite, according to a national survey by the Florida Atlantic University Business and Economics Polling Initiative (FAU BEPI).
The national Hispanic Consumer Sentiment Index dropped in December to 99.6, down slightly from 100.9 in October. Among Hispanic Republicans, however, the index experienced a post-election boost, rising more than 20 points from 90.5 in October to 111.85 in December. Conversely, the index plunged among Democrats from 105.61 in the month before the election to 88.94 in December.
“The data shows that Hispanic Republicans are optimistic about their personal finances in the future and the economic outlook of the U.S. with the win of Mr. Trump, while Hispanic Democrats are pessimistic,” said Monica Escaleras, Ph.D., director of the BEPI. “This gain in consumer confidence among Republican Hispanics from October to December is likely based on their optimism for the policy changes that will take place with the new president. He can expect to enjoy a honeymoon period among Hispanic Republican consumers.”
When asked to look ahead a year into the future and consider how they and their family would fare financially, after the election only 59 percent of Hispanic Democrats thought they would be better off, compared to 80 percent in October. Once again, Hispanic Republicans saw things differently post-election, with 89 percent saying they would be better off financially a year from now, compared with only 65 percent in October.
Turning to business conditions as a whole, 70 percent of Hispanic Republicans think the next 12 months will bring the country financially good times, up 12 points since October. Only 58 percent of Hispanic Democrats expect economic good times in the coming year, down 10 points from before the presidential election.
Long-term expectations for the economy were likewise split along party lines with 71 percent of Hispanic Republicans saying the country will experience continuous good times in the next five years, compared to only 53 percent of Hispanic Democrats.
The survey was conducted nationally from Dec. 1 through Dec. 31. The polling sample consisted of 500 Hispanics with a margin of error of +/- 4.33 percent and a 95 percent confidence level.