2013_14 IDP Review.pdf - KZN Development Planning

8.2.5 Index of Buying PowerAn Index of Buying Power is a popular indicator of a geographical area's relativeconsumer buying power. The index is calculated using weighted data for income,retail sales, and population in the area being evaluated. The index can be used byretailers when considering new store locations.The Index of Buying Power for the district has decreased marginally from 0.005% in1996 to 0.004% in 2011. The retail share of the national total has also decreased from0.3% in 1996 to 0.2% in 2011. Income share of the national total has remained staticat 0.4% for the period 1996 to 2011.Figure 36: Index of Buying Power (1996 – 2011)Source : Global Insight of SA (1996 – 2011)8.2.6 Annual Total Disposable IncomeThe growth in the annual total disposable income is summarised in the graph below.As can be seen, 1998 until the end of 1999 saw a negative growth in total disposableincome for the district. This was replaced by a period of positive growth from 2000 to2009 with a peak in the growth in 2006. Although still positive, there has been adecline in the growth rate from 2006 to 2009 which corresponds with the GlobalFinancial Crisis.Draft 2013/14 IDP Review Page 119Prepared by Umzinyathi District Municipality22 March 2013