Despite tighter economic times, African-American households are significantly increasing their expenditures on consumer electronics for the home, according to the newest edition of "The Buying Power of Black America" report.

In many categories such as video games, televisions, CD players, cable TV service and sound equipment, black households are spending more on average than their white counterparts.

This trend is just one of those highlighted in the annually published report from Target Market News, a 16-year-old research and information company that specializes in tracking African-American marketing, media and consumer behavior. "The Buying Power of Black America," which has been published annually for eleven years, is one of the most widely quoted sources of information on black consumer spending.

"At a time when being profitable requires companies to be very strategic in their planning, the African-American consumer market continues to offer untapped opportunities," said Ken Smikle, president of Target Market News and publisher of the report. "The black middle class is focused on maintaining a quality of life that a stronger economy provided by investing in products that give them value and convenience. This is a trend that marketers and manufacturers should pay close attention to."

According to the report, black households had $656 billion in earned income in 2003, an increase of 3.9% over the $631 earned in 2002.

Among the products that showed the greatest one-year increase were refrigerators (+24%), computers hardware (+23%) and software (+75%), satellite dishes (+112%), cable TV service (+15%) and video games (+86%). Sports and recreational equipment purchases rose 130%, while purchases for new cars and trucks increased 10%.

"The Buying Power of Black America," a 103-page report, is based on an analysis of expenditures reported by 3,000 black households for the Department of Commerce's Consumer Expenditure Survey.

Estimates of 2003 expenditures by all black U.S. households:

• Apparel Products and Services - $22.9 billion
• Appliances - $1.5 billion
• Beverages (Alcoholic) - $2.2 billion
• Beverages (Non-Alcoholic) - $2.9 billion
• Books - $303 million
• Cars, Trucks and Motorcycles - $29.1 billion
• Computers and Related Equipment - $1.9 billion
• Consumer Electronics - $3.2 billion
• Contributions - $10.3 billion
• Education - $4.6 billion
• Entertainment and Leisure - $2.5 billion
• Food - $53.9 billion
• Gifts - $7.9 billion
• Health Care - $16.7 billion
• Household Furnishings and Equipment - $11.6 billion
• Housewares - $1.1 billion
• Housing and Related Charges - $131.7 billion
• Insurance - $14.8 billion
• Media - $5.3 billion
• Personal Care Products and Services - $6.2 billion
• Sports and Recreational Equipment - $386 million
• Telephone Services - $13.6 billion
• Tobacco Products and Smoking Supplies - $2.6 billion
• Toys, Games and Pets - $1.9 billion
• Travel, Transportation and Lodging - $5.1 billion ================================================

To read more and/or purchase the 11th Annual Edition of "The Buying Power of Black America"

Posted 2004 By Afro Staff
Contributed by Jim Neusom