Economic optimism abounds for African-American consumers

African-Americans remain among the most optimistic consumer groups in the American economy, according to a study from market research firm Packaged Facts. The study, “African-Americans: Demographic and Consumer Spending Trends, 10th Edition,” found that nearly half (47 percent) of African-Americans think they will be better off financially 12 months from now, compared to just 37 percent of other Americans. Affluent blacks hold especially strong convictions about how their financial future will unfold.  

The reasons for the steadfast confidence of African-American consumers are many and complex, according to the report. Despite the growing chasm between the very rich and the rest of American society, there are strong reasons for African-Americans to believe that upward mobility remains achievable for them.

Key social and economic indicators point to a significant increase of middle- and higher-income African-Americans over the past decade, according to the report. During this period, the number of African-American households with an income of $100,000 or more jumped 83 percent, while the number of African-Americans employed in management and professional occupations grew from 3.8 million to 4.8 million, an increase of 26 percent. There are now nearly 2 million blacks who earn at least $75,000 annually.

The confidence of black consumers may also stem from the “Obama effect,” a phenomenon that sparked renewed optimism among African-Americans based on their pride in the election of the country’s first black president, the report stated. Packaged Facts said an analysis of trends in the consumer confidence index of Simmons National Consumer Study data found a factual basis for this hypothesis: In 2007 blacks were less likely than other Americans to be ranked as “highly confident” consumers (20 percent versus 25 percent). By 2009, the year after the election of President Obama, the positions of each segment had reversed. By 2013, following the re-election of President Obama, 42 percent of black consumers were rated as “highly confident” compared to just 28 percent of other American consumers.

The proportion of African-American consumers categorized as “highly confident” fell from 42 percent in 2014 to 38 percent in 2015 and 31 percent in 2016. Nevertheless, as the Obama administration nears its end, African-Americans remain more likely than other consumers to have a high degree of consumer confidence (31 percent vs. 27 percent).

For more information on the report, visit: https://www.packagedfacts.com/African-Americans-Demographic-10293172/.