Hispanic Buying Power Growing Quickly in South

An article this week in the Charlotte Observer highlights the growing economic power of Hispanics in the United States and South.

Hispanic buying power is growing at a faster clip than that of any other ethnic group in the nation and is about to eclipse that of African Americans, according to a report to be released today by the University of Georgia's Selig Center for Economic Growth.

It is notable that the states with the fastest growth rate are in the South.

In North Carolina, the pace at which Hispanic buying power -- personal income after taxes -- is growing is the second fastest of any state, according to the report. At an estimated $10 billion this year, the state's Hispanic buying power has risen 1,042 percent since 1990. That's second to Arkansas where it increased 1,174 percent to $2 billion over that same period. South Carolina ranked ninth with growth of 626 percent.

While Southern states are seeing the fastest growth rate in Hispanic spending, manifesting itself in bilingual advertising and store signs, it has yet to approach that of African Americans.

Humphreys noted that in North Carolina it is especially important for businesses to go after both markets. After all, African American buying power in North Carolina this year is projected to be $36 billion, or $26 billion greater than that of Hispanics. In fact, that's the third-largest gap between black and Hispanic buying power in the nation, after Georgia ($42 billion) and Maryland ($39 billion).
"It is going to be a long time before Hispanic buying power equals African Americans in North Carolina," Humphreys said. "But the growth rate for (Hispanic) buying power is extremely compelling in North Carolina.