The Buying Power of Black America 2006

13th Annual Edition Now Available
Black consumers increase spending on lifestyle “necessities”

Thanks to economic gains in the past two years, black households across the U.S., especially middle-class families, are increasing their purchases of lifestyle and leisure items. Products such as cell phone service, travel, restaurant meals and entertainment and leisure increased significantly in 2005.

With home ownership growing and unemployment down, African-American consumers are increasing expenditures on goods and services that are lifestyle-oriented. According to the newest edition of “The Buying Power of Black America,” there are indications that black households are feeling more confident about making purchases that they have denied themselves in recent years.

“The economy has been sluggish for most of the past five years,” said Ken Smikle, president of Target Market News, publisher of the report. “Some of the categories where the strongest growth occurred are for products that are necessities for maintaining a certain lifestyle.”

“The Buying Power of Black America” report is the nation’s most widely quoted research source on black consumer spending. Now in its 13^th year of publication, the report details how African-American consumers spent billions of dollars in 25 categories and over 500 sub-categories.

The report also breaks down by market the estimated $719 billion in earned income among black households in 2005. Data from the U.S. government show that African-Americans continue to be the largest non-white segment of the population.

Among the expenditures highlighted in the report are consumer electronics like cameras (+16%), cellular phone service (+16%) and video equipment (+18%). Entertainment and leisure expenditures overall are up 13%, travel increased 27% and apparel rose 18% among men and 22% for women.

“The Buying Power” report is based on an analysis of expenditures reported by 3,000 black households for the Department of Commerce’s Consumer Expenditure Survey and the American Community Survey.

Expenditures for Black Households 2005

Apparel Products and Services	$21.9 billion
Appliances	1.7 billion
Beverages (Alcoholic)	2.3 billion
Beverages (Non-Alcoholic)	2.7 billion
Books	257 million
New and Used Cars and Trucks	28.7 billion
Computers and Related Equipment	2.0 billion
Consumer Electronics	3.7 billion
Contributions	11.4 billion
Education	6.0 billion
Entertainment and Leisure	2.2 billion
Food	53.8 billion
Gifts	7.1 billion
Health Care	17.9 billion
Household Furnishings & Equipment	10.7 billion
Housewares	596 million
Housing and Related Charges	110.2 billion
Insurance	16.6 billion
Media	6.3 billion
Personal Care Products and Services	6.3 billion
Sports and Recreational Equipment	475 million
Telephone Services	14.0 billion
Tobacco Products	2.4 billion
Toys, Games and Pets	1.679 billion
Travel, Transportation and Lodging	4.637 billion

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