Small Business Sales Accelerate, Retail Leads the Way

Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, has published the Fiserv Small Business Index for October 2024.

“The Fiserv Small Business Index delivers a timely and detailed look at the way consumers are spending at small businesses,” said Jennifer LaClair, Head of Merchant Solutions at Fiserv. “This month’s index shows that consumer spending was strong in October, with healthy increases to both total sales and foot traffic, a welcome sign for small businesses as they head deeper into the holiday season.”

Nationally, the seasonally adjusted Fiserv Small Business Index increased six points to 147, marking one of the largest monthly gains and the highest overall Index value since the baseline period of January 2019. On a year-over-year basis, small business sales (+7.1%) and total transactions (+8.8%) grew compared to 2023. Month-over-month sales (+3.7%) and transactions (+3.0%) also rose significantly compared to September.

“Enthusiastic consumer spending was seen throughout small business categories in October, with growth across both goods and services, and discretionary and non-discretionary spend,” said Prasanna Dhore, Chief Data Officer at Fiserv. “Notably, retail sales surged in October. Strong consumer foot traffic combined with less inflation resulted in every retail subsector showing sales growth.”

Retail

Nationally, the Fiserv Small Business Index for Retail Trade was 150, a five-point increase from September. Year-over-year sales (+5.8%) and transactions (+9.2%) grew as average ticket sizes (-3.3%) continued to decline. Year over year, the fastest growing retail categories were General Merchandise (+11.4%), Food and Beverage (+8.4%), Furniture (+7.8%) and Health and Personal Care (+6.8%).

On a monthly basis, Retail sales (+3.6%) rebounded after a slight dip in September; transactions grew (+3.1%). The strongest month-over-month gains were seen within Food and Beverage (+3.2%), Building Materials (+4.2%), Furniture (+4.3%) and Health and Personal Care (+5.4%).

Restaurants

Food Services and Drinking Places, which includes restaurants, indexed at 127 in October, a 2-point increase compared to September. Year over year, restaurants saw growth in both total sales (+5.9%) and foot traffic (+7.6%); average ticket sizes continued to decline (-1.7%) compared to 2023. On a monthly basis, both restaurant sales (+1.3%) and transactions (+2.4%) grew, rebounding from modest declines in September.