One of the fastest-growing groups of US consumers is hitting the brakes.
What started a few months ago with makers of beer brands like Modelo warning of a pullback among Hispanic customers as anxiety about immigration raids and tariffs set in has now extended to other parts of the economy.
Consumption by Hispanic families barely rose in the year through June, according to research firm Numerator. Spending by White and Black households, meanwhile, continued to grow, albeit at a slower pace than seen in 2024.
Spending by US Hispanic Consumers Stalls
Year-over-year percentage change in consumption
Note: Data based on performance of consumer packaged goods, general merchandise or limited-service restaurants, broken out by ethnicity. Twelve-month rolling data as of June 30.
Hispanics — who account for almost 20% of the US population — have been a key engine powering consumer spending during the pandemic recovery, but the group is starting to bend after years of price increases and a cooling labor market.
From restaurant chains like Jack in the Box Inc. to discount retailer Ross Stores Inc., a growing number of companies that rely on that group for a sizable part of their business have noted the pullback on recent earnings calls.
Hispanics as a whole earn less than the national average, and lower-income families — regardless of their ethnicity — have been struggling with higher costs of living.
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