Strong Retail and Restaurant Sales Ahead of Holidays
MILWAUKEE-- Fiserv, Inc. (NYSE: FI), a prominent provider of payments and financial services technology, has shared its latest findings through the Fiserv Small Business Index for November 2024. This insightful index examines consumer spending trends during a crucial period for small businesses as the holiday shopping season takes off.
Consumer Spending on the Rise
The Fiserv Small Business Index indicated robust consumer spending during November. Jennifer LaClair, the Head of Merchant Solutions at Fiserv, mentioned that the holiday season brought healthy growth compared to previous years. Year-over-year sales gains accompanied by a notable increase in foot traffic signal positive trends for small businesses, making this a pivotal time for them.
Key Performance Metrics
According to the index, the seasonally adjusted value was 144 for November, representing a modest decrease from October. However, year-over-year growth in small business sales reached 4.8%, with total transactions increasing by 9.1% compared to last November. Month-over-month figures showed sales easing slightly by 1.6%, while transactions gained 0.6%, indicating steadiness after strong growth in the previous month.
Retail and Restaurant Sectors Thrive
The retail sector maintained a steady performance with an index value of 150 in November. Year-over-year sales climbed by 5.6%, and transactions surged by 9.5%. Notably, the retail growth momentum continued from October, demonstrating resilience within the retail landscape, despite a slight decline in average ticket sizes.
Restaurant Sector Insights
Restaurants experienced significant growth, evidenced by an increase in their index to 131. Year-over-year sales rose by 8.1%, with foot traffic up by 8.7%. This upward trend is supported by consumers’ willingness to dine out, highlighting the importance of this period for food service establishments.
Service Sector Observations
Service-based industries showed a year-on-year sales increase of 5.1%, despite experiencing a decline when compared to October 2024. As consumer preferences shifted more towards dining and retail, some service categories showed impressive growth. Notably, Information Services and Food Manufacturing led this growth with increases of 15.0% and 14.8%, respectively.
Regional Growth Trends
The index also revealed significant year-over-year growth across almost all U.S. states. States like Nebraska, Florida, and Alaska stood out, demonstrating the substantial evolution in small business sales. Even major cities like Miami and Atlanta reflected strong performance, suggesting a healthy landscape for small businesses.
Looking Ahead: Holiday Insights to Be Released
In the upcoming days, Fiserv plans to release a detailed report focusing on consumer spending insights during the 2024 holiday season. This report will provide an in-depth look at trends and behaviors observed across the critical shopping days, including the impact of events such as Black Friday and Cyber Monday.
Understanding the Fiserv Small Business Index
The Fiserv Small Business Index stands out by aggregating actual consumer spending activities rather than relying on surveys. By using point-of-sale transaction data from around 2 million U.S. small businesses, it provides a reliable monthly measure of small business performance across various sectors.
About Fiserv
Fiserv, Inc. (NYSE: FI) is recognized as a leader in the payments and financial technology field. The company supports its clients through a variety of innovative solutions that enhance account processing, digital banking, and payments. The commitment to excellence has earned Fiserv acknowledgment as a member of the S&P 500® Index and a consistent presence among Fortune® World’s Most Admired Companies™.
Frequently Asked Questions
1. What does the Fiserv Small Business Index measure?
The Fiserv Small Business Index measures consumer spending activity in the small business sector through real transaction data, providing insights into sales trends and customer traffic.
2. How did restaurant sales perform in November 2024?
Restaurants experienced significant growth, with total sales increasing by 8.1% year-over-year and foot traffic rising by 8.7% compared to the same period last year.
3. What is the overall trend for retail sales?
Retail sales held steady with a slight increase in transactions. Year-over-year sales grew by 5.6% and transactions by 9.5%, showcasing a resilient retail sector.
4. Which states showed the most growth in small business sales?
Nebraska, Florida, and Alaska demonstrated notable sales growth year-over-year, indicating strong performance across various small businesses.
5. What upcoming report can consumers expect?
Fiserv will soon release a report detailing insights on consumer spending patterns during the 2024 holiday season, highlighting trends from key shopping days.
