BIZ Online NGLCC

The LGBT economy is more powerful than ever.

A new analysis of the American LGBT community shows that their collective buying power in 2008 is $712 billion. That figure is an increase from 2007's estimate of $690 billion.

The analysis, conducted by market research firms Witeck-Combs Communications and Packaged Facts, follows standard methods of projecting purchasing power of other consumer groups, such as Hispanics and African Americans, Witeck-Combs said in a statement.

In fact, one could argue that the LGBT economic numbers are even more striking for the fact that they only cover self-identified LGBT adults 18 and over, while market studies of ethnic minorities include consumers of all ages. This analysis estimated that between 15 and 16 million adult Americans—6 to 7 percent of the total U.S. population—identified themselves as lesbian, gay, bisexual or transgender.

Growing LGBT economic clout came as no surprise to the National Gay and Lesbian Chamber of Commerce (NGLCC), which advocates for LGBT businesses and consumers.

"Our missions is dedicated to education American business leaders on the far-reaching financial contributions made by LGBT households and business owners," said Justin Nelson, co-founder and president of NGLCC.

"This analysis helps confirm what we've learned about the integral roles that LGBT people play throughout the entire U.S. economy, and remind us that our efforts are valued and recognized."

Witeck-Combs CEO Bob Witeck is quick to caution that the $712 billion figure is an estimate of collective purchasing power, not individual LGBT affluence. Anti-gay forces have long employed inaccurate portrayals of gays as wealthier-than-average to justify their opposition to LGBT civil rights.

"Buying power is not the same as affluence or wealth. No one should infer that same-sex households are more affluent than others," says Witeck, adding that academic research has shown that gay males' salaries may be somewhat less than their heterosexual counterparts'.

At the same time, LGBTs are less likely to have children and more likely, if coupled, to live in a two-income household, boosting their percentage of disposable income.

Most importantly, they are more apt to spend that income on goods and services from companies they know are supportive of their gay employees and gay customers, says NGLCC's Justin Nelson.

"The LGBT community's brand loyalty is second to none. We are very conscious of which companies treat their LGBT employees fairly and which ones make sincere efforts to meet the needs of their LGBT customers," he says.

"More so than anyone else, we vote with our wallets. This report should be a wake-up call to companies trying to retain customers in this difficult economy, because in today's business environment, being gay friendly is as good as money in the bank."