Understanding the Fiserv Small Business Index for October 2024
Fiserv, Inc. (NYSE: FI), a key player in payments and financial technology, has recently released the Fiserv Small Business Index for October 2024, showcasing a significant uptick in small business sales. This report offers a comprehensive look at consumer spending trends, signaling encouraging news for small businesses as they prepare for the holiday shopping season.
Consumer Spending Insights
Positive Trends Across the Board
According to Jennifer LaClair, Head of Merchant Solutions at Fiserv, the latest index highlights robust consumer spending in October. There were notable increases in both total sales and foot traffic at small businesses, indicating a healthy market environment as businesses gear up for the busy holiday period.
The Fiserv Small Business Index Value
The Fiserv Small Business Index surged six points to reach 147, marking one of the most significant monthly gains recorded since January 2019. Year-over-year, small business sales saw an increase of 7.1%, while total transactions rose by 8.8%. The month-over-month figures also demonstrated positive growth, with sales increasing by 3.7% and transactions by 3.0% compared to the previous month.
Sector Performance: Retail Leads the Charge
Remarkable Growth in Retail Trade
Looking closely at specific sectors, retail emerged as a standout performer. The Fiserv Small Business Index for Retail Trade jumped five points to 150. The retail sector recorded year-over-year sales growth of 5.8% and transactions growth of 9.2%, even as average ticket sizes decreased by 3.3%. The most robust growth categories include General Merchandise, which rose by 11.4%, followed by Food and Beverage at 8.4%, Furniture at 7.8%, and Health and Personal Care at 6.8%.
Month-Over-Month Retail Trends
In a promising turn, retail sales increased by 3.6% month-over-month, rebounding from a slight dip in September, with transactions up by 3.1%. The most significant month-over-month increases were noted in Food and Beverage (+3.2%), Building Materials (+4.2%), Furniture (+4.3%), and Health and Personal Care (+5.4%).
Insights Into Food Services and Other Sectors
Restaurants and Food Services
The Food Services and Drinking Places category, which includes restaurants, indexed at 127 in October, marking a 2-point increase from September. Year-over-year figures indicated growth in total sales of 5.9% and foot traffic up by 7.6%. There was a slight decline in average ticket sizes by 1.7% compared to the previous year, but both restaurant sales and transactions experienced growth month-over-month, rebounding by 1.3% and 2.4%, respectively.
Service Sector Performance
Service-oriented small businesses also experienced positive growth. Year-over-year comparisons showed an increase of 7.4%, while there was a month-over-month growth of 4.0%. Within this category, the Professional, Scientific, and Technical Services sector saw impressive year-over-year growth of 13.7%, alongside a monthly increase of 1.3%. Similarly, Specialty Trade Contractors reported a year-over-year growth of 7.6% alongside a month-over-month sales boost of 1.3%.
Regional Insights and Trends
State-Level Growth
Across the nation, every U.S. state observed positive sales growth for small businesses month-over-month. States such as Delaware, Michigan, and Utah reported the highest growth rates, with increases of 8.1%, 7.9%, and 7.4%, respectively.
Performance in Major Cities
Among major cities, Philadelphia and Atlanta showcased particularly strong sales growth, with Philadelphia seeing a growth of 5.6% and Atlanta 5.1% month-over-month. Both cities also led in year-over-year sales growth figures.
About the Fiserv Small Business Index
The Fiserv Small Business Index is meticulously compiled during the initial week of each month, offering insights based on real consumer spending data instead of surveys or speculative data. Utilizing point-of-sale transaction data from around two million small businesses in the U.S., the Index aggregates data from various payment methods, including card, cash, and checks across both in-store and online purchases. This direct measurement provides a clear snapshot of spending patterns across multiple sectors.
About Fiserv
Fiserv, Inc. (NYSE: FI), positioned among the Fortune 500, strives to innovate within the realm of financial technology. As a global leader, Fiserv aids clients in achieving superior outcomes through a focus on excellence in diverse areas, including digital banking, card processing, and merchant services. Recognized as a member of the S&P 500 and celebrated for being one of Fortune's Most Admired Companies for nine out of the last ten years, Fiserv continues to lead the industry in financial service innovations.
Frequently Asked Questions
What does the Fiserv Small Business Index indicate?
The Fiserv Small Business Index offers insights into consumer spending patterns at small businesses, reflecting overall market vitality.
How much did small business sales grow in October 2024?
In October 2024, small business sales increased by 7.1% compared to the previous year, with a significant month-over-month rise of 3.7%.
Which sector showed the most growth in October?
The retail sector experienced considerable growth, with an index value increase to 150 and year-over-year sales growth of 5.8%.
How does Fiserv gather data for the Small Business Index?
Fiserv aggregates sales data through point-of-sale transactions across approximately 2 million small businesses, ensuring accurate and timely insights.
What is Fiserv's commitment to innovation?
Fiserv is dedicated to advancing financial services technology, focusing on providing innovative solutions in payments and banking for clients worldwide.
