U.S. Marketers are quickly shifting growth priorities among multicultural (MC) segments, especially since the White Non-Hispanic (WNH) segment has been declining since 2016. The MC economic outlook for 2018 looks remarkably powerful for several reasons:
- The Employment-Participation rate is higher than WNH and continues to step up, especially for Hispanics
- Unemployment rate is at record lows for all MC segments
- Personal Income has continued to increase for all MC segments while it has slowed down for WNH.
As a result, 100% of all new Upscale and 36% of new Affluent Households in the U.S. have come from MC segments, boosting the MC & LGBT’s economy at twice the rate of WNH to $4.6 Trillion in 2018 – equivalent to third place in the global economy, and next to China in buying power!
Despite the MC consumer spend strength and the segments’ strong job participation, MC consumers’ confidence in their immediate personal finances has been softening, while WNH has been increasing. Most notably, MC consumers have been losing faith in their future economic wellbeing and the overall direction of the U.S. Economy; this is especially true among African Americans. In fact, even though the stock market is reaching record highs, MC consumers appear leery about entering financial markets. That said, they appear 40-50% more resolved than WNH in making investments to improve their homes, purchase new homes and even making durable goods purchases like autos and major electronics.
The bottom line is that, economic indicators suggest that Multicultural consumers are reaching a new normal in which they are uncertain about how policies may impact them in the long-run, yet their personal pocketbooks are healthy thus they plan to spend at leisure throughout 2018.