US Hispanic Consumers Slow Spending Amid Cost-of-Living Headwinds

Spending by America’s Hispanic consumers is reportedly slowing amid tariff and immigration-related concerns.

Consumption among these families barely increased during the year through June, Bloomberg News reported Saturday (Sept. 6), citing data from research firm Numerator. Spending among white and Black households was up, though it grew at a slower rate compared to last year.

The report noted that Hispanics, who make up nearly 20% of the U.S. population, have been a crucial driver of consumer spending in the pandemic recovery, but have begun to cut back following years of price increases and a cooling job market.

“Hispanic households are experiencing disproportionate financial headwinds,” said Shawn Paustian, an analyst at Numerator. “These consumers can no longer absorb rising costs — many are compensating by trading down to lower-priced brands or purchasing smaller pack sizes to manage budgets.”

Also slowing spending is President Donald Trump’s crackdown on undocumented immigrants, even among the bulk of Hispanics who are citizens or have legal status.

“We are partying less, we’re gathering less, we’re using more delivery services, therefore we’re consuming less,” Ana Valdez, president of the Latino Donor Collaborative, a nonprofit providing data and research on that community, told Bloomberg. “Latinos are feeling it and it’s impacting our consumption even if we’re completely, legitimately here.”

Constellation Brands, the maker of beers like Corona and Modelo, said this week that Hispanics, who account for half of its customers, are purchasing less high-end beer. And Ross Dress For Less said last month that its stores with a higher concentration of Hispanic consumers didn’t perform as well as other markets. The company said on a recent earnings call it is now testing price increases in some areas.

Meanwhile, PYMNTS wrote last week about the broader financial landscape for paycheck-to-paycheck consumers, noting that weak jobs data released at the start of the month could make it tough for those consumers to escape the pressures of their financial situations.

“New jobs promise new income, usually a salary or per-hour bump, as wages overall have been on the rise,” that report said.

Coming into this year, PYMNTS Intelligence found that 38% of individuals anticipated changing jobs this year. That percentage climbed to 56% of those living paycheck to paycheck with issues paying bills, which suggested that the headaches of their financial lives would spark them to weigh a move to new employers.

“The read-across is that upward wage mobility translates into a brighter spending picture, or at least savings, which means that some incremental financial firepower would accumulate,” PYMNTS wrote.