Purchasing Power of Industrial Customers:
The way to measure the purchasing power of the industrial goods customers is to look into the expenditure of the industrial users or through their sales volume. But this method is difficult to estimate because the information is difficult to obtain. Purchasing power can only be estimated indirectly.
By using an activity indicator of buying power, some market factor is applied in relation to sales and expenditures.
The purchasing power and the number of industrial users can be combined. Various methods of measurement are outlined below.
Mining Activity
To measure the purchasing power of the industrial customers in the mining activity means a reference to output and value. How many mines are operating? What is their output? What is the shilling value of the output as it leaves the mine? The answers to these questions can help determine the purchasing power of the mining firms.