March Confidence Survey shows drop in plans by blacks to buy big-ticket items

(April 26, 2006) Current economic factors may be leading more black consumers to express pessimism about purchasing big-ticket items. That’s the most significant change in consumers’ attitudes recorded by the March Target Market News/NiaOnline Black Consumer Confidence Survey.

"Black optimism about making big-ticket purchases dropped markedly between February and March, bringing it to its lowest levels since last autumn," observed Cheryl Mayberry McKissack, president and CEO of Nia Enterprises in Chicago.

When asked if they plan to buy a big-ticket item such as a car, major appliance, or high-end electronics within the next 90 days, 26 percent of blacks said yes in the March survey. While that number is down from the 34 percent that in February said they would make such purchases, it I still higher by ten percent of the white consumers who said yes.

Seventy-three percent of black respondents feel secure about their current employment status for the next 90 days, compared with 76 percent of U.S. whites, according to the March 2006 Target Market News/NiaOnline Black Consumer Confidence Survey.

”The confidence that the majority of black consumers have about their jobs means that their plans to cut back on big-ticket purchases stems primarily from rising gasoline prices,” said Ken Smikle, president of Target Market News. “With the expectation that gas prices will remain high through the summer months, marketers need to re-evaluate their strategies to hold on to market share.”

Black job optimism was up one percentage point from the February survey, in which 72 percent of blacks and 74 percent whites said they feel secure about their current employment status for the next 90 days. Twenty-seven percent of blacks and 24 percent whites in the March survey said they are not sure they will be in their current job 90 days from now.

The latest Target Market News/NiaOnline Black Consumer Confidence Survey was conducted in March 2006 by Chicago-based Nia Enterprises, LLC through its NiaOnline Quick Response survey service (www.niaonline.com). All respondents to the survey were members of NiaOnline.com's Consumer Advisory Panel, which reaches over 125,000 black household members. The results are based on responses from 403 black respondents and 353 white respondents.

How do you feel about your job status for the
next 90 days?

BLACKS     Aug    Sept    Oct    Nov    Dec   Jan   Feb    Mar
Will be in    71%  73%    70%   74%   73%  70%  72%  73%
current job          

May not be 29%  27%   30%    26%   27%  30%   28%  27%
in current
job     

WHITES      Aug    Sept   Oct    Nov    Dec  Jan    Feb   Mar
Will be in    73%   73%   72%   74%  73% 71%   74%  76%
current job          

May not      27%   27%   28%   26%  27% 29%   26%   24%
be in
current  job     

--------------------------------
Do you think you'll buy a big-ticket item in the next 90 days?

BLACKS    Aug   Sept   Oct    Nov    Dec    Jan    Feb    Mar
Yes             30%  25%   31%   33%  32%   31%   34%  26%
No               52%  58%   51%   49%  50%   52%   47%  56%
Not sure    18%   17%  18%   18%  17%   17%   19%  18%

WHITES
Yes              14%   13%   16%  16%  14%   18%   17%  16%
No                63%   63%   62%  60%  61%   59%   54%  61%
Not sure     23%   24%   22%  24%  25%   23%   29%  23%


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Latest 'Buying Power' report shows black consumers spending more on home life

As the American economy continues to move sluggishly, African-American households are curtailing their spending in many categories, including food, clothing and basic household items, while investing more in home repair, home entertainment and consumer electronics. Although they are trimming back, black consumers are still spending more than their white counterparts on most of these products.
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