Study: Minorities' disposable income will grow faster than white households over next five years

<p>Disposable income controlled by minorities will continue growing at a faster rate than that of white households at least through 2009, according to a study released Wednesday by the University of Georgia.</p><p>The annual study by the school's Terry College of Business and Selig Center for Economic Growth bases buying power on a person's disposable income, which is the amount of after-tax income he or she has available for spending on goods and services.</p><p>By 2009, the combined buying power of blacks, Asian-Americans and American Indians will exceed $1.5 trillion, more than triple the 1990 level of $456 billion, the study found.</p><p>"The buying power of African-Americans, Hispanics, Asians and Native Americans is energizing the U.S. consumer market as never before. Today, African-Americans have $723 billion in spending power, and Hispanics have $686 billion. These groups' economic clout is surging, and it is reshaping the commercial and retail landscape of America," said Jeff Humphreys, director of the Selig Center and the report's author.</p><p>The study also found that Hispanic and black households are spending more on eating out and entertainment as their buying power increases.</p><p>Between the years 1997 and 2002, black households spent 43.6 percent more (from an average of $1,056 to $1,517 a year) on eating out and Hispanic households increased spending at restaurants by 34.3 percent (from an average of $1,506 to $2,023 a year), according to U.S. Bureau of Labor Statistics data.</p><p>Annual spending on entertainment jumped by 28.9 percent (from an average of $872 to $1,124) in black households while spending by Hispanic households increased 23.9 percent (from an average of $1,137 to $1,409), the study said.</p><p>California is the top-ranked state in terms of total buying power for every minority group except blacks.</p>