Western Cape Barometer

How do provincial barometers work?

The provincial barometers measure business activity levels of six South African private sector provinces. These provinces are Gauteng, Western Cape, Eastern Cape and the Free State, KZN and Limpopo.

The barometer for an individual province consists of a set of sub-indices that not only measures the overall performance of the province, but also individual economic subsectors.

The barometers were developed by renowned economist Mike Schüssler.
They are unique as they are developed specifically for an individual province. The information is sourced from a comprehensive range of individual time series that is specific to the particular province.
These time series are sourced from various sources, including Stats SA, industry bodies and individual companies.
The data is deflated and seasonally adjusted and their contribution to the provincial indices weighted to their actual contribution.
The individual provincial barometers do not measure economic growth, but highlights how the private sector economy reacts to changing market conditions. It highlights the immediate health of the provincial economy and its underlying economic sectors.

The information is published monthly and will provide key information to all entrepreneurs and business owners, as well decision-makers in the provincial government and industry bodies.
The individual provincial barometers compile detailed main and sub indices for the following sectors:

1. Growth Index (measures real growth in activity levels in all individual sectors)
2. Economic Stress (measures the negative factors in the economy, and is an indication of how difficult it is to do business in the province).
3. The main provincial barometer
4. Agriculture
5. Construction
6. Financial and business services
7. Electricity
8. Manufacturing
9. Government Spending
10. Transport
11. Trade (includes retail and wholesale, as well as tourism and entertainment)


The Growth Index is compiled through the consolidation of the performance of all the individual economic sectors. This growth index does not take into account the negative elements in the provincial economy. The Economic Stress Index measures these negative stresses. The provincial barometer is compiled by deflating the Growth Index with the Economic Stress Index.
For more information about the provincial barometers, contact Mike Schussler on 011 781 9980.