The Consumer Confidence Index hit 92.2 in February, from a revised 97.8 in January, the Conference Board said. That's lower than the 97.3 expected by analysts, and the lowest level since July, according to Thomson Reuters.
We recently conducted our annual consumer sentiment study with readable base sizes of Hispanics, African-Americans, Asians, and non-Hispanic whites. A segmented view of the cohorts paints a different picture and emphasizes why 2016 is an ideal year to shift some spend to Hispanics.
Below are three reasons why brands should focus on U.S. Hispanics in 2016:
1. Hispanics (and African-Americans) are the most likely to believe their finances will improve in 2016.
Almost 60% of Hispanics and 61% of African-Americans feel that their finances will improve in 2016 vs. only 45% and 42% of non-Hispanic whites and Asians, respectively. This optimism typically correlates with spend and with numbers this high, it is worth taking a look at Hispanics in 2016.
2. African-Americans are statistically more likely to purchase new home electronics, a new home/condo, and directionally more likely to purchase a new car/truck , smartphone, and laptop in 2016:
The chart speaks for itself. Electronic companies, consumer durable goods manufacturers, and automakers rejoice. There is good news in 2016 among African-Americans despite the low consumer confidence reported.
3. Similar to their outlook regarding personal finances, Hispanics and African-Americans have the most positive outlook for the US economy in 2016:
Despite having more optimism last year, Hispanics and African-Americans are clearly the most optimistic about the economy this year compared to their peers. With this confidence comes the confidence to purchase more goods and services than their non-Hispanic white and Asian counterparts that are not as optimistic.
As the first quarter in 2016 closes, Hispanics and African-American consumers are a bright spot in the U.S. economic landscape. Most companies are aware of the importance of reaching these critical groups, however many have yet to dedicate significant resources to making their products and services relevant to these consumers in a meaningful way. For those brands looking to make headway with these consumers, 2016 is an ideal year as their confidence in their financial standing and the U.S. economy exceeds all other cohorts.