Small Business Sales Regain Momentum

Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, has published the Fiserv Small Business Index for July 2024. The Fiserv Small Business Index is an indicator of the pace and nature of consumer spending at small businesses in the United States at national, state and industry levels.

“The Fiserv Small Business Index provides timely and granular insight into consumer spending at small businesses, which is often a bellwether for the broader economy,” said Jennifer LaClair, Head of Merchant Solutions at Fiserv. “Following modest declines in June, consumer spending rebounded nicely in July to help many small businesses start the second half of the year strong.”

Nationally, the seasonally adjusted Fiserv Small Business Index for July rose to 141. This jump in consumer spending followed a four-point decline in June. On a year-over-year basis, both small business sales (+3.5%) and transactions (+3.3%) grew compared to July 2023. Month-over-month small business sales grew (+1.3%) despite transactions slightly declining (-0.7%).

“Consumer spending patterns continue to shift, most notably with Retail spend experiencing a decisive bounce back compared to June,” said Prasanna Dhore, Chief Data Officer at Fiserv. “Specialty trade and professional services also performed very well due to seasonal demand and stabilizing inflation rates.”

Retail

July saw strong retail spending growth as the national Retail index rose by four points to 146. Year-over-year retail sales (+4.6%) and transactions (+5.8%) increased and all retail subsectors showed growth compared to June. General Merchandise (+10.9%) led retail in yearly growth, followed by Health and Personal Care (+8.6%), Building Equipment and Garden Materials (+6.2%), Food and Beverage Retailers (+4.9) and Furniture, Electronics and Appliances (+4.7%).

On a monthly basis, retail sales (+2.5%) and transactions (+0.1%) grew as higher average ticket sizes drove short-term spending, even though foot traffic remained relatively flat. Motor Vehicle and Parts Dealers (+4.8%) and Furniture, Electronics and Appliances (+4.8%) led growth compared to June, followed by General Merchandise (+3.5%) and Health and Personal Care (+3.1%).

Restaurant

Food Services and Drinking Places indexed at 123 for July, a 4-point decline from June. On an annual basis, restaurant sales declined (-1.6%) despite seeing modest growth in foot traffic (+0.7%). Consumers dining out have also seen a significant decrease in average ticket size (-2.4%) compared to July 2023.