The Power Index Method is primarily associated with measuring and analyzing buying power in a market rather than directly related to trading or stock indices. It evaluates a market’s potential by combining key economic factors like buying income, retail sales, and population size to generate a score that indicates the market’s capability to support retail success and investment potential.
The Power Index Method, also commonly known as the Buying Power Index (BPI), is calculated with a weighted formula: it assigns 50% weight to the market’s proportion of total effective buying income, 30% to retail sales, and 20% to population size. This composite score helps businesses and investors assess the economic strength and spending potential in a specific region.
