Johannesburg has a higher than average household income that, combined a strong growth in household income, translates into significant purchasing power.
Measuring the index of buying power (IBP) as a percentage of the national total, Johannesburg's IBP in 2004 was 0.14 indicating that 14 percent of demand for goods and services emanated from Johannesburg. The second largest consumer market was Cape Town, with 11 percent. In comparison, eThekwini commanded only nine percent, Ekurhuleni eight percent, Nelson Mandela Metro three percent, and Tshwane with one percent.
Per capita purchases in the retail sector have increased over 1996's figures in virtually all areas.
Sector G rowth
Services are crucial to Johannesburg's economy, particularly financial and business services. Trade; transport; manufacturing; finance and community services are more important in the city's economy than in the national economy. Primary and secondary sector activity such as a griculture, mining, electricity and construction is less important to the economy of Johannesburg. The financial and business services sector, which has always been the cornerstone of the City's economy, has become relatively more important over the past seven years. The economy is now more concentrated and its growth more dependant on this sector than at any time in Johannesburg's history.
The services sector is the largest contributor to GVA, showing continuous growth, and continues to absorb labour with employment increasing by 49 percent between 1997 and 2004.
The financial sector in Johannesburg outperforms the national economy and all other metros.