SlideShare ist ein Scribd-Unternehmen logo
1 von 8
Downloaden Sie, um offline zu lesen
MARKET BRIEF
                                                  May 2004

                             U.S. Hispanic Purchasing Power:
                                        1978-2010
U.S. Hispanic purchasing power has surged to nearly $700 billion and is projected to reach as
much as $1 trillion by 2010, according to new estimates by HispanTelligence®.
The rate of growth is nearly three times the overall national rate of the past decade and will
propel the aggregate disposable income of the nation’s largest minority group to $699.78 billion
in 2004, according to a HispanTelligence® analysis of data recently released by the U.S. Bureau
of Economic Analysis.

The rising affluence of the nation’s 38.8 million Hispanics is coming at a blistering pace. U.S.
Hispanic purchasing power has been increasing at a compound annual growth rate of 5.6 percent
since 1978, more than twice as fast as the 2.31 percent rate for total U.S. purchasing power
during the same period.

The rising rate of purchasing power is even more impressive over the past 10 years: From 1994
to 2004, U.S. Hispanic purchasing power has posted a compound annual growth rate of 7.5
percent – compared with just 2.8 percent for total U.S. disposable income. (See Figure 1.)

                             Figure 1. Compound Annual Growth Rate
                                           7.5%
                      8.0%
                                 5.6%
                      6.0%
                      4.0%                                               2.8%
                                                               2.3%
                      2.0%
                      0.0%
                                  U.S. Hispanic                  U.S. Total


                                             1978-2004       1994-2004



While burgeoning population growth has served as a catalyst for some of the increase in the
economic vitality of the Hispanic community, rising educational levels, rapid employment
growth, and a changing labor profile also are driving the rise. Higher-paying managerial and
professional jobs are the fastest-growing occupational categories for Hispanics, up from 10.9
percent of Hispanic employment in 1990 to 16.8 percent in 2003, according to the Bureau of
Labor Statistics.



                                                                                                       1
Hispanic Business Inc.                                                             Tel: 805/964-4554
425 Pine Ave.                                                                      Fax: 805/964-6139
Santa Barbara, CA 93117                                                         research@hbinc.com
MARKET BRIEF
                                            May 2004

Meanwhile, Hispanic employment has shown strong growth, increasing more than 13.8 percent
from January 2000 to March 2004, compared with overall U.S. employment growth that
fluctuated around 2 percent. The Hispanic jobless rate also has fallen: By the end of 2003, the
jobless rate was only 1.2 percentage points higher than the U.S. average – down from 4.1
percentage points in both 1982 and 1992.


Purchasing Power Projections

The outlook for continued growth in U.S. Hispanic purchasing power remains strong, and
HispanTelligence® has developed two projections based on several variables through 2010. (See
Figure 2.)

A conservative projection, Scenario 1, assumes a continued linear climb in U.S. disposable
income and the continued current earned-income differential between Hispanics and the total
U.S. population. Other factors, such as the number of Hispanic households with income, also
were held constant. Using these assumptions, U.S. Hispanic purchasing power would reach
$727.4 billion by 2010, up 17.5 percent from this scenario’s projected $619.2 billion for 2004.
The compound annual growth rate for Scenario 1 projections is 3.28 percent.

A more realistic projection, however, may be to account for a rate of change in the determinants
of Hispanic purchasing power. In Scenario 2, HispanTelligence® accounted for a narrowing of
the income gap between U.S. Hispanics and the total U.S. population, and an increase in the
number of Hispanic households with income.

Based on Census Bureau data, HispanTelligence® estimates that the rate at which U.S. Hispanic
household income is “catching up” to that of the total U.S. population is 1.28 percent annually,
increasing projections for U.S. Hispanic purchasing power growth considerably.
HispanTelligence® also estimated the rate of increase in Hispanic households reporting income
over the past decade, and while the rate is less than 1 percent, its additive effect on estimating
purchasing power is significant.

Based on Scenario 2 projections, HispanTelligence® expects U.S. Hispanic purchasing power
will surge nearly 51 percent to $1.055 trillion by 2010 – a rate that outpaces overall U.S.
disposable income growth by more than 36 percentage points. The compound annual growth rate
for Scenario 2 projections is 4.6 percent.




                                                                                                   2
Hispanic Business Inc.                                                         Tel: 805/964-4554
425 Pine Ave.                                                                  Fax: 805/964-6139
Santa Barbara, CA 93117                                                     research@hbinc.com
MARKET BRIEF
                                              May 2004

Figure 2. U.S. Hispanic Purchasing Power ($B): 2004 – 2010

              1200

              1000

               800

               600

               400

               200

                  0
                          2004    2005     2006       2007         2008   2009      2010

                                               Scenario 1   Scenario 2



                          Table 1. U.S. Hispanic Purchasing Power Projections

                         2004      2005      2006      2007      2008      2009      2010
            U.S. Total $8,208.64 $8,618.72 $8,823.76 $9,028.80 $9,233.84 $9,438.88 $9,643.92
            Scenario 1    $619.2    $650.1    $665.6    $681.0    $696.5    $711.9    $727.4
            % of Total     7.5%      7.5%      7.5%      7.5%      7.5%      7.5%      7.5%
            Scenario 2    $699.8    $767.8    $820.5    $875.5    $932.9    $992.7 $1,055.0
            % of Total     8.5%      8.9%      9.3%      9.7%     10.1%     10.5%     10.9%


The spending power of U.S. Hispanics currently accounts for 7.5 percent of total U.S. disposable
income and is estimated to remain unchanged through 2010 under Scenario 1. However, because
Scenario 2 accounts for the closing of the income gap and the increase in the number of Hispanic
households with an income, Hispanic disposable income as a percentage of total U.S. disposable
income is expected to increase. Under Scenario 2, Hispanic purchasing power currently accounts
for 8.5 percent and is expected to reach almost 11 percent of total U.S. disposable income by
2010 (See Table 1).




                                                                                                    3
Hispanic Business Inc.                                                          Tel: 805/964-4554
425 Pine Ave.                                                                   Fax: 805/964-6139
Santa Barbara, CA 93117                                                      research@hbinc.com
MARKET BRIEF
                                                    May 2004

Historically, total U.S. purchasing power increased by more than 70 percent during the 1980s,
picking up pace in the 1990s to grow more than 84 percent. While the growth rate of Hispanic
purchasing power is expected to slow slightly over the next few years, the 2010 projection is still
predicted to reflect an increase of more than 80 percent over 2001. (See Table 2.)

                          Table 2. Historical Purchasing Power: ($B): Scenario 2

                      Year         Value      Year        Value           Year     Value

                      1981         $174.68    1991            $306.17     2001      $584.61
                      1982          173.17    1992             343.02     2002       626.56
                      1983          203.92    1993             346.71     2003       668.51
                      1984          223.22    1994             365.96     2004       699.78
                      1985          235.26    1995             361.26     2005       767.75
                      1986          251.58    1996             391.95     2006       820.50
                      1987          265.23    1997             415.37     2007       875.55
                      1988          283.64    1998             464.87     2008       932.95
                      1989          290.72    1999             499.26     2009       992.75
                      1990          297.59    2000             564.28     2010     1,054.99
                     Growth        70.37%    Growth           84.30%     Growth     80.46%
                     CAG*           6.10%    CAG*              7.03%     CAG*        6.78%

The upward projections for Hispanic spending power continue a trend that began in the mid-
1980s. (See Figure 3.) A significant increase in purchasing power that occurred after 2000 can be
attributed to Census Bureau data that established the U.S. Hispanic population as the largest
minority group in the United States.

                     Figure 3. U.S. Hispanic Purchasing Power ($B): 1981 - 2010

                    $1,200

                    $1,000

                      $800

                      $600

                      $400

                      $200

                          $0
                            1980    1985     1990      1995       2000      2005    2010


                                                                                                          4
Hispanic Business Inc.                                                                Tel: 805/964-4554
425 Pine Ave.                                                                         Fax: 805/964-6139
Santa Barbara, CA 93117                                                            research@hbinc.com
MARKET BRIEF
                                              May 2004

Regional Purchasing Power Estimates

HispanTelligence® also has estimated U.S. Hispanic purchasing power in several key states with
significant Hispanic populations. (See Figure 4.) Purchasing power is the highest in California at
$157.6 billion, accounting for more than 22 percent of all U.S. Hispanic purchasing power;
Texas ranks second with $84.8 billion.

Together, California and Texas account for more than 34 percent of all Hispanic purchasing
power and nearly half of the entire U.S. Hispanic population resides in one of these two states.
(See Table 3.) Additionally, employment rates for Hispanics in California and Texas are
generally higher than in other states such as New York or Florida. Recent Bureau of Labor
Statistics data show 64.3 percent of California-based Hispanics, and 62.6 percent of Texas-based
Hispanics are employed; comparatively, 60.7 percent of Hispanics in Florida, and 56.5 percent of
Hispanics in New York are employed.


                   Figure 4. U.S. Hispanic Purchasing Power ($B) by State, 2004


             180
                      $157.58
             160
             140
             120
             100
                                  $84.80
              80
              60
                                            $30.70    $28.51
              40
                                                                 $17.30    $13.49
              20
               0
                     California   Texas    New York   Florida   Colorado   Illinois




                                                                                                  5
Hispanic Business Inc.                                                        Tel: 805/964-4554
425 Pine Ave.                                                                 Fax: 805/964-6139
Santa Barbara, CA 93117                                                    research@hbinc.com
MARKET BRIEF
                                             May 2004

      Table 3. Distribution of Hispanic Population and Purchasing Power by State, 2004

                                Pct. of Hispanic         Pct. of
                               Purchasing Power    Hispanic Population

                          CA         22.5                 30.8
                          TX         12.1                 18.9
                          NY          4.4                  7.9
                          FL          4.1                  7.8
                          CO          2.5                  2.1
                          IL          1.9                  4.3




On a regional basis, Hispanics in California saw their disposable income grow the fastest over
the past six years than those in other states. Disposable income for California Hispanics has
grown at a compounded annual rate of 9.1 percent, compared to 8.16 percent for Illinois, and
7.63 percent and 6.71 percent for Colorado and Texas, respectively. (See Table 4.) The increase
in spending power in these states can be primarily attributed to population growth, although
evidence suggests Hispanics in these areas are also experiencing occupational mobility into
higher-paying sectors.

                    Table 4. U.S. Hispanic Purchasing Power by State, 1998-2004

                         1998 1999    2000   2001   2002   2003   2004 CAG
              California $93.3 $103.7 $121.5 $133.9 $142.3 $149.9 $157.6 9.1%
              Texas        57.5  59.2   73.9   73.8   76.8   81.1   84.8   6.7
              NY           24.8  23.8   27.1   27.3   28.2   29.5   30.7   3.6
              Florida      20.1  20.4   23.3   24.5   26.1   27.2   28.5   6.0
              Colorado     11.1  11.9   13.0   14.8   15.3   16.4   17.3   7.6
              Illinois      8.4   9.3   10.4   11.9   12.5   12.9   13.5   8.2




                                                                                                  6
Hispanic Business Inc.                                                       Tel: 805/964-4554
425 Pine Ave.                                                                Fax: 805/964-6139
Santa Barbara, CA 93117                                                   research@hbinc.com
MARKET BRIEF
                                                May 2004

A regional review of purchasing power also highlights disparities. (See Table 5.) Hispanics in
and around Illinois report the highest average household income ($53,185), and the smallest
difference in earned income with the general state population. On average, Hispanics in the
Illinois region earn 93 cents to every dollar earned by non-Hispanics. Hispanics in California and
its surrounding areas report the second-highest average household income ($47,475), and a
moderate income disparity of 73 cents to every dollar. Hispanics in the New York area report the
lowest average household income ($40,015), and the worst income disparity of 65 cents to every
dollar.

                            Table 5. Average Hispanic Household Income
                                    and Income Disparity Factors

                            Hispanic Average     State Average
                            Household Income       Household       Income Disparity
                  Regions                            Income             Factor
               California             $47,475            $64,783                0.733
               Texas                   40,015             54,690                0.732
               NY                      41,590             64,344                0.646
               Florida                 45,417             55,393                0.820
               Colorado                41,433             56,557                0.733
               Illinois                53,185             57,205                0.930




                                                                                                    7
Hispanic Business Inc.                                                          Tel: 805/964-4554
425 Pine Ave.                                                                   Fax: 805/964-6139
Santa Barbara, CA 93117                                                      research@hbinc.com
MARKET BRIEF
                                             May 2004

Methodology

The HispanTelligence® purchasing power estimates are based on several variables such as
disposable income as determined by the Bureau of Economic Analysis, percent of Hispanic
households with income as a total of all U.S. households with income as reported in the Current
Population Survey (CPS) for each estimate year, and an adjustment for an undercount of the U.S.
Hispanic population, estimated by the U.S. Census.

An income disparity factor (IDF) adjusts for variation in earned income by Hispanic households
to that of the total U.S. population, calculated based on mean household income using CPS data.
Using CPS data, a statistic to measure the rate of increase in Hispanic households also was
calculated and used to adjust the model.

Purchasing power projections generated by the current model differ slightly from projections
made in the fall of 2003 due to external data factors. For instance, since the compilation of the
fall 2003 projections, aggregate disposable income for 2003 has been revised upward by the
Bureau of Economic Analysis. The resulting effect was an increase in the current projections.
Overall, however, the new projections are within an acceptable range of variance (less than 1
percent) from fall 2003 projections.


About HispanTelligence®

Since 1979, the Hispanic Business Inc. research division has helped corporations, media
organizations and marketing agencies track and analyze data on the U.S. Hispanic and Latin
American markets. We perform custom-survey design and implementation to identify strategic
opportunities for firms selling to Hispanic consumers or companies. We work with both public-
and private-sector organizations to provide custom reports and intelligence on U.S. Hispanic
consumers and companies.

For special projects, our Board of Economists – a panel of experts on various aspects of the
Hispanic economy – is available for consultation. Further information can be found at
www.hispanicbusiness.com.

To contact HispanTelligence®, e-mail research@hbinc.com or call (805) 964-4554, extension
605.

Copyright© 2004 Hispanic Business Inc., Santa Barbara, California, and HispanTelligence,
Santa Barbara, California. All rights reserved.


                                                                                                    8
Hispanic Business Inc.                                                          Tel: 805/964-4554
425 Pine Ave.                                                                   Fax: 805/964-6139
Santa Barbara, CA 93117                                                      research@hbinc.com

Weitere ähnliche Inhalte

Was ist angesagt?

Wal Mart Store FinancialOctober 11/08/07
Wal Mart Store FinancialOctober 	11/08/07Wal Mart Store FinancialOctober 	11/08/07
Wal Mart Store FinancialOctober 11/08/07finance1
 
US Hispanics. The Latin Market Right at Home.
US Hispanics. The Latin Market Right at Home.US Hispanics. The Latin Market Right at Home.
US Hispanics. The Latin Market Right at Home.Adriana Cisneros
 
Restaurant Monthly Update - December 2017
Restaurant Monthly Update - December 2017Restaurant Monthly Update - December 2017
Restaurant Monthly Update - December 2017Duff & Phelps
 
Profile of the mexican us community
Profile of the mexican us communityProfile of the mexican us community
Profile of the mexican us communityJose Luis Lopez Mota
 
gannett 1Q05transcript
gannett 1Q05transcriptgannett 1Q05transcript
gannett 1Q05transcriptfinance30
 
Size of the prize category booklet
Size of the prize category bookletSize of the prize category booklet
Size of the prize category bookletMichael Evanchan
 
ChoicesArticle_3Q2016
ChoicesArticle_3Q2016ChoicesArticle_3Q2016
ChoicesArticle_3Q2016Heidi Bubela
 
Profile of the U.S. Hispanic Consumer 2
Profile of the U.S. Hispanic Consumer 2Profile of the U.S. Hispanic Consumer 2
Profile of the U.S. Hispanic Consumer 2Solucion Inc
 
Greater Uncertainty Threatens Expansion
Greater Uncertainty Threatens ExpansionGreater Uncertainty Threatens Expansion
Greater Uncertainty Threatens Expansioncapitalraider
 
Seminars At Steamboat: Robert Reischauer
Seminars At Steamboat: Robert ReischauerSeminars At Steamboat: Robert Reischauer
Seminars At Steamboat: Robert Reischauererthwurm
 
01 This Month In Real Estate Canada 2010
01 This Month In Real Estate Canada 201001 This Month In Real Estate Canada 2010
01 This Month In Real Estate Canada 2010Keller Williams Careers
 
Local Government Education Employment
Local Government Education EmploymentLocal Government Education Employment
Local Government Education EmploymentLuis Taveras EMBA, MS
 

Was ist angesagt? (15)

Wal Mart Store FinancialOctober 11/08/07
Wal Mart Store FinancialOctober 	11/08/07Wal Mart Store FinancialOctober 	11/08/07
Wal Mart Store FinancialOctober 11/08/07
 
US Hispanics. The Latin Market Right at Home.
US Hispanics. The Latin Market Right at Home.US Hispanics. The Latin Market Right at Home.
US Hispanics. The Latin Market Right at Home.
 
Restaurant Monthly Update - December 2017
Restaurant Monthly Update - December 2017Restaurant Monthly Update - December 2017
Restaurant Monthly Update - December 2017
 
Profile of the mexican us community
Profile of the mexican us communityProfile of the mexican us community
Profile of the mexican us community
 
gannett 1Q05transcript
gannett 1Q05transcriptgannett 1Q05transcript
gannett 1Q05transcript
 
RESEARCH UNEMPLOYMENT FINAL
RESEARCH UNEMPLOYMENT FINALRESEARCH UNEMPLOYMENT FINAL
RESEARCH UNEMPLOYMENT FINAL
 
Size of the prize category booklet
Size of the prize category bookletSize of the prize category booklet
Size of the prize category booklet
 
ChoicesArticle_3Q2016
ChoicesArticle_3Q2016ChoicesArticle_3Q2016
ChoicesArticle_3Q2016
 
Brazil
BrazilBrazil
Brazil
 
Profile of the U.S. Hispanic Consumer 2
Profile of the U.S. Hispanic Consumer 2Profile of the U.S. Hispanic Consumer 2
Profile of the U.S. Hispanic Consumer 2
 
Hispanic101
Hispanic101Hispanic101
Hispanic101
 
Greater Uncertainty Threatens Expansion
Greater Uncertainty Threatens ExpansionGreater Uncertainty Threatens Expansion
Greater Uncertainty Threatens Expansion
 
Seminars At Steamboat: Robert Reischauer
Seminars At Steamboat: Robert ReischauerSeminars At Steamboat: Robert Reischauer
Seminars At Steamboat: Robert Reischauer
 
01 This Month In Real Estate Canada 2010
01 This Month In Real Estate Canada 201001 This Month In Real Estate Canada 2010
01 This Month In Real Estate Canada 2010
 
Local Government Education Employment
Local Government Education EmploymentLocal Government Education Employment
Local Government Education Employment
 

Ähnlich wie Hispanic Purchasing Power Ht

2016 ECONOMIC AND HOUSING MARKET FORECAST
2016 ECONOMIC AND HOUSING MARKET FORECAST2016 ECONOMIC AND HOUSING MARKET FORECAST
2016 ECONOMIC AND HOUSING MARKET FORECASTRonny Budiutama
 
2021 Market Forecast - Leslie Appleton-YoungChief Economist + SVPCalifornia A...
2021 Market Forecast - Leslie Appleton-YoungChief Economist + SVPCalifornia A...2021 Market Forecast - Leslie Appleton-YoungChief Economist + SVPCalifornia A...
2021 Market Forecast - Leslie Appleton-YoungChief Economist + SVPCalifornia A...Lynne Watanabe-MacFarlane
 
USA Economy today.pptx
USA Economy today.pptxUSA Economy today.pptx
USA Economy today.pptxCarolH7
 
Hispanic Market Presentation 2015 7.23.15
Hispanic Market Presentation 2015 7.23.15Hispanic Market Presentation 2015 7.23.15
Hispanic Market Presentation 2015 7.23.15Rebecca Lambert
 
2016 Economic and Housing Real Estate Forecast-California Realtors Association
2016 Economic and Housing Real Estate Forecast-California Realtors Association2016 Economic and Housing Real Estate Forecast-California Realtors Association
2016 Economic and Housing Real Estate Forecast-California Realtors AssociationRealEstateEducation
 
Annie Williams Real Estate Report - April 2019
Annie Williams Real Estate Report - April 2019Annie Williams Real Estate Report - April 2019
Annie Williams Real Estate Report - April 2019Jon Weaver
 
Annie Williams Real Estate Report - June 2020
Annie Williams Real Estate Report - June 2020Annie Williams Real Estate Report - June 2020
Annie Williams Real Estate Report - June 2020Jon Weaver
 
Latino L&L 2.7.12
Latino L&L 2.7.12Latino L&L 2.7.12
Latino L&L 2.7.12yesbello
 
Annie Williams Market Report May-June 2016
Annie Williams Market Report May-June 2016Annie Williams Market Report May-June 2016
Annie Williams Market Report May-June 2016Jon Weaver
 
Annie Williams Real Estate Report - May 2020
Annie Williams Real Estate Report - May 2020Annie Williams Real Estate Report - May 2020
Annie Williams Real Estate Report - May 2020Jon Weaver
 
2017 Housing Market Forecast - Leslie Appleton Young
2017 Housing Market Forecast - Leslie Appleton Young2017 Housing Market Forecast - Leslie Appleton Young
2017 Housing Market Forecast - Leslie Appleton YoungInman News
 
Economist Intelligence Unit Webinar: No Double Dip_8_26_10
Economist Intelligence Unit Webinar: No Double Dip_8_26_10Economist Intelligence Unit Webinar: No Double Dip_8_26_10
Economist Intelligence Unit Webinar: No Double Dip_8_26_10The Economist Media Businesses
 

Ähnlich wie Hispanic Purchasing Power Ht (20)

2016 ECONOMIC AND HOUSING MARKET FORECAST
2016 ECONOMIC AND HOUSING MARKET FORECAST2016 ECONOMIC AND HOUSING MARKET FORECAST
2016 ECONOMIC AND HOUSING MARKET FORECAST
 
Lake Elsinore EDWC Presentation, 9/20/2018
Lake Elsinore EDWC Presentation, 9/20/2018Lake Elsinore EDWC Presentation, 9/20/2018
Lake Elsinore EDWC Presentation, 9/20/2018
 
2021 Market Forecast
2021 Market Forecast2021 Market Forecast
2021 Market Forecast
 
2021 Market Forecast - Leslie Appleton-YoungChief Economist + SVPCalifornia A...
2021 Market Forecast - Leslie Appleton-YoungChief Economist + SVPCalifornia A...2021 Market Forecast - Leslie Appleton-YoungChief Economist + SVPCalifornia A...
2021 Market Forecast - Leslie Appleton-YoungChief Economist + SVPCalifornia A...
 
August 2018 Realtor Report for Southwest California
August 2018 Realtor Report for Southwest CaliforniaAugust 2018 Realtor Report for Southwest California
August 2018 Realtor Report for Southwest California
 
USA Economy today.pptx
USA Economy today.pptxUSA Economy today.pptx
USA Economy today.pptx
 
September 2018 Realtor Report
September 2018 Realtor ReportSeptember 2018 Realtor Report
September 2018 Realtor Report
 
Hispanic Market Presentation 2015 7.23.15
Hispanic Market Presentation 2015 7.23.15Hispanic Market Presentation 2015 7.23.15
Hispanic Market Presentation 2015 7.23.15
 
Realtor Report for May, 2016
Realtor Report for May, 2016Realtor Report for May, 2016
Realtor Report for May, 2016
 
Southwest California Realtor Report for September 2019
Southwest California Realtor Report for September 2019Southwest California Realtor Report for September 2019
Southwest California Realtor Report for September 2019
 
2016 Economic and Housing Real Estate Forecast-California Realtors Association
2016 Economic and Housing Real Estate Forecast-California Realtors Association2016 Economic and Housing Real Estate Forecast-California Realtors Association
2016 Economic and Housing Real Estate Forecast-California Realtors Association
 
Annie Williams Real Estate Report - April 2019
Annie Williams Real Estate Report - April 2019Annie Williams Real Estate Report - April 2019
Annie Williams Real Estate Report - April 2019
 
Tiểu luận tiếng Anh Tình hình lạm phát tại Mỹ
Tiểu luận tiếng Anh Tình hình lạm phát tại MỹTiểu luận tiếng Anh Tình hình lạm phát tại Mỹ
Tiểu luận tiếng Anh Tình hình lạm phát tại Mỹ
 
Annie Williams Real Estate Report - June 2020
Annie Williams Real Estate Report - June 2020Annie Williams Real Estate Report - June 2020
Annie Williams Real Estate Report - June 2020
 
Latino L&L 2.7.12
Latino L&L 2.7.12Latino L&L 2.7.12
Latino L&L 2.7.12
 
Annie Williams Market Report May-June 2016
Annie Williams Market Report May-June 2016Annie Williams Market Report May-June 2016
Annie Williams Market Report May-June 2016
 
Annie Williams Real Estate Report - May 2020
Annie Williams Real Estate Report - May 2020Annie Williams Real Estate Report - May 2020
Annie Williams Real Estate Report - May 2020
 
2017 Housing Market Forecast - Leslie Appleton Young
2017 Housing Market Forecast - Leslie Appleton Young2017 Housing Market Forecast - Leslie Appleton Young
2017 Housing Market Forecast - Leslie Appleton Young
 
Economist Intelligence Unit Webinar: No Double Dip_8_26_10
Economist Intelligence Unit Webinar: No Double Dip_8_26_10Economist Intelligence Unit Webinar: No Double Dip_8_26_10
Economist Intelligence Unit Webinar: No Double Dip_8_26_10
 
October Housing Report for Southwest California
October Housing Report for Southwest CaliforniaOctober Housing Report for Southwest California
October Housing Report for Southwest California
 

Kürzlich hochgeladen

Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZKanakChauhan5
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 

Kürzlich hochgeladen (20)

Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZ
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 

Hispanic Purchasing Power Ht

  • 1. MARKET BRIEF May 2004 U.S. Hispanic Purchasing Power: 1978-2010 U.S. Hispanic purchasing power has surged to nearly $700 billion and is projected to reach as much as $1 trillion by 2010, according to new estimates by HispanTelligence®. The rate of growth is nearly three times the overall national rate of the past decade and will propel the aggregate disposable income of the nation’s largest minority group to $699.78 billion in 2004, according to a HispanTelligence® analysis of data recently released by the U.S. Bureau of Economic Analysis. The rising affluence of the nation’s 38.8 million Hispanics is coming at a blistering pace. U.S. Hispanic purchasing power has been increasing at a compound annual growth rate of 5.6 percent since 1978, more than twice as fast as the 2.31 percent rate for total U.S. purchasing power during the same period. The rising rate of purchasing power is even more impressive over the past 10 years: From 1994 to 2004, U.S. Hispanic purchasing power has posted a compound annual growth rate of 7.5 percent – compared with just 2.8 percent for total U.S. disposable income. (See Figure 1.) Figure 1. Compound Annual Growth Rate 7.5% 8.0% 5.6% 6.0% 4.0% 2.8% 2.3% 2.0% 0.0% U.S. Hispanic U.S. Total 1978-2004 1994-2004 While burgeoning population growth has served as a catalyst for some of the increase in the economic vitality of the Hispanic community, rising educational levels, rapid employment growth, and a changing labor profile also are driving the rise. Higher-paying managerial and professional jobs are the fastest-growing occupational categories for Hispanics, up from 10.9 percent of Hispanic employment in 1990 to 16.8 percent in 2003, according to the Bureau of Labor Statistics. 1 Hispanic Business Inc. Tel: 805/964-4554 425 Pine Ave. Fax: 805/964-6139 Santa Barbara, CA 93117 research@hbinc.com
  • 2. MARKET BRIEF May 2004 Meanwhile, Hispanic employment has shown strong growth, increasing more than 13.8 percent from January 2000 to March 2004, compared with overall U.S. employment growth that fluctuated around 2 percent. The Hispanic jobless rate also has fallen: By the end of 2003, the jobless rate was only 1.2 percentage points higher than the U.S. average – down from 4.1 percentage points in both 1982 and 1992. Purchasing Power Projections The outlook for continued growth in U.S. Hispanic purchasing power remains strong, and HispanTelligence® has developed two projections based on several variables through 2010. (See Figure 2.) A conservative projection, Scenario 1, assumes a continued linear climb in U.S. disposable income and the continued current earned-income differential between Hispanics and the total U.S. population. Other factors, such as the number of Hispanic households with income, also were held constant. Using these assumptions, U.S. Hispanic purchasing power would reach $727.4 billion by 2010, up 17.5 percent from this scenario’s projected $619.2 billion for 2004. The compound annual growth rate for Scenario 1 projections is 3.28 percent. A more realistic projection, however, may be to account for a rate of change in the determinants of Hispanic purchasing power. In Scenario 2, HispanTelligence® accounted for a narrowing of the income gap between U.S. Hispanics and the total U.S. population, and an increase in the number of Hispanic households with income. Based on Census Bureau data, HispanTelligence® estimates that the rate at which U.S. Hispanic household income is “catching up” to that of the total U.S. population is 1.28 percent annually, increasing projections for U.S. Hispanic purchasing power growth considerably. HispanTelligence® also estimated the rate of increase in Hispanic households reporting income over the past decade, and while the rate is less than 1 percent, its additive effect on estimating purchasing power is significant. Based on Scenario 2 projections, HispanTelligence® expects U.S. Hispanic purchasing power will surge nearly 51 percent to $1.055 trillion by 2010 – a rate that outpaces overall U.S. disposable income growth by more than 36 percentage points. The compound annual growth rate for Scenario 2 projections is 4.6 percent. 2 Hispanic Business Inc. Tel: 805/964-4554 425 Pine Ave. Fax: 805/964-6139 Santa Barbara, CA 93117 research@hbinc.com
  • 3. MARKET BRIEF May 2004 Figure 2. U.S. Hispanic Purchasing Power ($B): 2004 – 2010 1200 1000 800 600 400 200 0 2004 2005 2006 2007 2008 2009 2010 Scenario 1 Scenario 2 Table 1. U.S. Hispanic Purchasing Power Projections 2004 2005 2006 2007 2008 2009 2010 U.S. Total $8,208.64 $8,618.72 $8,823.76 $9,028.80 $9,233.84 $9,438.88 $9,643.92 Scenario 1 $619.2 $650.1 $665.6 $681.0 $696.5 $711.9 $727.4 % of Total 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% Scenario 2 $699.8 $767.8 $820.5 $875.5 $932.9 $992.7 $1,055.0 % of Total 8.5% 8.9% 9.3% 9.7% 10.1% 10.5% 10.9% The spending power of U.S. Hispanics currently accounts for 7.5 percent of total U.S. disposable income and is estimated to remain unchanged through 2010 under Scenario 1. However, because Scenario 2 accounts for the closing of the income gap and the increase in the number of Hispanic households with an income, Hispanic disposable income as a percentage of total U.S. disposable income is expected to increase. Under Scenario 2, Hispanic purchasing power currently accounts for 8.5 percent and is expected to reach almost 11 percent of total U.S. disposable income by 2010 (See Table 1). 3 Hispanic Business Inc. Tel: 805/964-4554 425 Pine Ave. Fax: 805/964-6139 Santa Barbara, CA 93117 research@hbinc.com
  • 4. MARKET BRIEF May 2004 Historically, total U.S. purchasing power increased by more than 70 percent during the 1980s, picking up pace in the 1990s to grow more than 84 percent. While the growth rate of Hispanic purchasing power is expected to slow slightly over the next few years, the 2010 projection is still predicted to reflect an increase of more than 80 percent over 2001. (See Table 2.) Table 2. Historical Purchasing Power: ($B): Scenario 2 Year Value Year Value Year Value 1981 $174.68 1991 $306.17 2001 $584.61 1982 173.17 1992 343.02 2002 626.56 1983 203.92 1993 346.71 2003 668.51 1984 223.22 1994 365.96 2004 699.78 1985 235.26 1995 361.26 2005 767.75 1986 251.58 1996 391.95 2006 820.50 1987 265.23 1997 415.37 2007 875.55 1988 283.64 1998 464.87 2008 932.95 1989 290.72 1999 499.26 2009 992.75 1990 297.59 2000 564.28 2010 1,054.99 Growth 70.37% Growth 84.30% Growth 80.46% CAG* 6.10% CAG* 7.03% CAG* 6.78% The upward projections for Hispanic spending power continue a trend that began in the mid- 1980s. (See Figure 3.) A significant increase in purchasing power that occurred after 2000 can be attributed to Census Bureau data that established the U.S. Hispanic population as the largest minority group in the United States. Figure 3. U.S. Hispanic Purchasing Power ($B): 1981 - 2010 $1,200 $1,000 $800 $600 $400 $200 $0 1980 1985 1990 1995 2000 2005 2010 4 Hispanic Business Inc. Tel: 805/964-4554 425 Pine Ave. Fax: 805/964-6139 Santa Barbara, CA 93117 research@hbinc.com
  • 5. MARKET BRIEF May 2004 Regional Purchasing Power Estimates HispanTelligence® also has estimated U.S. Hispanic purchasing power in several key states with significant Hispanic populations. (See Figure 4.) Purchasing power is the highest in California at $157.6 billion, accounting for more than 22 percent of all U.S. Hispanic purchasing power; Texas ranks second with $84.8 billion. Together, California and Texas account for more than 34 percent of all Hispanic purchasing power and nearly half of the entire U.S. Hispanic population resides in one of these two states. (See Table 3.) Additionally, employment rates for Hispanics in California and Texas are generally higher than in other states such as New York or Florida. Recent Bureau of Labor Statistics data show 64.3 percent of California-based Hispanics, and 62.6 percent of Texas-based Hispanics are employed; comparatively, 60.7 percent of Hispanics in Florida, and 56.5 percent of Hispanics in New York are employed. Figure 4. U.S. Hispanic Purchasing Power ($B) by State, 2004 180 $157.58 160 140 120 100 $84.80 80 60 $30.70 $28.51 40 $17.30 $13.49 20 0 California Texas New York Florida Colorado Illinois 5 Hispanic Business Inc. Tel: 805/964-4554 425 Pine Ave. Fax: 805/964-6139 Santa Barbara, CA 93117 research@hbinc.com
  • 6. MARKET BRIEF May 2004 Table 3. Distribution of Hispanic Population and Purchasing Power by State, 2004 Pct. of Hispanic Pct. of Purchasing Power Hispanic Population CA 22.5 30.8 TX 12.1 18.9 NY 4.4 7.9 FL 4.1 7.8 CO 2.5 2.1 IL 1.9 4.3 On a regional basis, Hispanics in California saw their disposable income grow the fastest over the past six years than those in other states. Disposable income for California Hispanics has grown at a compounded annual rate of 9.1 percent, compared to 8.16 percent for Illinois, and 7.63 percent and 6.71 percent for Colorado and Texas, respectively. (See Table 4.) The increase in spending power in these states can be primarily attributed to population growth, although evidence suggests Hispanics in these areas are also experiencing occupational mobility into higher-paying sectors. Table 4. U.S. Hispanic Purchasing Power by State, 1998-2004 1998 1999 2000 2001 2002 2003 2004 CAG California $93.3 $103.7 $121.5 $133.9 $142.3 $149.9 $157.6 9.1% Texas 57.5 59.2 73.9 73.8 76.8 81.1 84.8 6.7 NY 24.8 23.8 27.1 27.3 28.2 29.5 30.7 3.6 Florida 20.1 20.4 23.3 24.5 26.1 27.2 28.5 6.0 Colorado 11.1 11.9 13.0 14.8 15.3 16.4 17.3 7.6 Illinois 8.4 9.3 10.4 11.9 12.5 12.9 13.5 8.2 6 Hispanic Business Inc. Tel: 805/964-4554 425 Pine Ave. Fax: 805/964-6139 Santa Barbara, CA 93117 research@hbinc.com
  • 7. MARKET BRIEF May 2004 A regional review of purchasing power also highlights disparities. (See Table 5.) Hispanics in and around Illinois report the highest average household income ($53,185), and the smallest difference in earned income with the general state population. On average, Hispanics in the Illinois region earn 93 cents to every dollar earned by non-Hispanics. Hispanics in California and its surrounding areas report the second-highest average household income ($47,475), and a moderate income disparity of 73 cents to every dollar. Hispanics in the New York area report the lowest average household income ($40,015), and the worst income disparity of 65 cents to every dollar. Table 5. Average Hispanic Household Income and Income Disparity Factors Hispanic Average State Average Household Income Household Income Disparity Regions Income Factor California $47,475 $64,783 0.733 Texas 40,015 54,690 0.732 NY 41,590 64,344 0.646 Florida 45,417 55,393 0.820 Colorado 41,433 56,557 0.733 Illinois 53,185 57,205 0.930 7 Hispanic Business Inc. Tel: 805/964-4554 425 Pine Ave. Fax: 805/964-6139 Santa Barbara, CA 93117 research@hbinc.com
  • 8. MARKET BRIEF May 2004 Methodology The HispanTelligence® purchasing power estimates are based on several variables such as disposable income as determined by the Bureau of Economic Analysis, percent of Hispanic households with income as a total of all U.S. households with income as reported in the Current Population Survey (CPS) for each estimate year, and an adjustment for an undercount of the U.S. Hispanic population, estimated by the U.S. Census. An income disparity factor (IDF) adjusts for variation in earned income by Hispanic households to that of the total U.S. population, calculated based on mean household income using CPS data. Using CPS data, a statistic to measure the rate of increase in Hispanic households also was calculated and used to adjust the model. Purchasing power projections generated by the current model differ slightly from projections made in the fall of 2003 due to external data factors. For instance, since the compilation of the fall 2003 projections, aggregate disposable income for 2003 has been revised upward by the Bureau of Economic Analysis. The resulting effect was an increase in the current projections. Overall, however, the new projections are within an acceptable range of variance (less than 1 percent) from fall 2003 projections. About HispanTelligence® Since 1979, the Hispanic Business Inc. research division has helped corporations, media organizations and marketing agencies track and analyze data on the U.S. Hispanic and Latin American markets. We perform custom-survey design and implementation to identify strategic opportunities for firms selling to Hispanic consumers or companies. We work with both public- and private-sector organizations to provide custom reports and intelligence on U.S. Hispanic consumers and companies. For special projects, our Board of Economists – a panel of experts on various aspects of the Hispanic economy – is available for consultation. Further information can be found at www.hispanicbusiness.com. To contact HispanTelligence®, e-mail research@hbinc.com or call (805) 964-4554, extension 605. Copyright© 2004 Hispanic Business Inc., Santa Barbara, California, and HispanTelligence, Santa Barbara, California. All rights reserved. 8 Hispanic Business Inc. Tel: 805/964-4554 425 Pine Ave. Fax: 805/964-6139 Santa Barbara, CA 93117 research@hbinc.com