September's Fiserv Index Indicates Customer Stability
Insights from the Fiserv Small Business Index for September
Fiserv, Inc. (NYSE: FI), recognized as a leader in financial technology and services, announced the findings from its Small Business Index for September. This index serves as a vital measure of consumer spending patterns across the small business sector in the United States. Understanding these trends is critical for small business owners as they prepare for shifts in consumer behavior heading into the fourth quarter and the holiday shopping season.
Current Trends in Consumer Spending
The Fiserv Small Business Index stood at 141 in September, reflecting a consistent pattern in consumer spending over the last few months. Year-over-year, small business sales increased by 1.8% while total transactions saw a rise of 4.0% compared to the previous year. However, there was little change month-over-month, with a slight sales uptick of 0.1% and a minor decline in transactions by 0.6% when compared to August.
Jennifer LaClair, Head of Merchant Solutions at Fiserv, highlighted the index's findings, saying, "The September index delivers an insightful overview of how consumers are allocating their spending at small businesses. It's encouraging to see that spending remains stable as we approach the promising fourth quarter.”
Shift in Spending Patterns
Throughout September, notable trends emerged that indicated a shift in consumer preferences. Prasanna Dhore, Chief Data Officer at Fiserv, noted that consumers directed their spending towards specialty trades, technology, educational services, and healthcare. In contrast, retail and restaurant spending exhibited slower growth.
Impact on Retail Sales
In the retail sector, the Fiserv Small Business Index showed a slight decline to 144, down two points from August. Despite a year-over-year increase in sales (0.6%) and transactions (4.6%), certain categories, like Gasoline Stations, experienced significant reductions in business activity, with a decrease in average ticket sizes reflecting lower consumer demand.
Monthly data reflected a decline in retail trade by 1.7%. This drop can be attributed to reduced foot traffic, which saw a decline of 1.3%. While Building Materials and Garden Equipment experienced a slight increase of 0.1% in sales, other categories, particularly Gasoline and Food Services, saw noticeable reductions.
Restaurant and Food Services Analysis
The Food Services and Drinking Places sector indexed at 125 this September, marking a one-point decline from the previous month. Year-over-year, restaurants enjoyed a boost in both total sales (2.6%) and foot traffic (3.3%), despite a small decline in average ticket size. Nonetheless, this month saw a slight drop in overall restaurant sales (1.0%) and transactions (0.1%).
Service Industry Growth
Service-oriented sectors demonstrated notable growth during this period. Professional, Scientific, and Technical Services reported substantial increases with sales up by 11.9% and transactions rising by 8.1% compared to last September. Other service categories, such as Web Search and Libraries, showcased impressive growth, particularly this month, indicating that consumers are increasingly relying on these services.
Regional Performance Highlights
When looking at the performance of different regions, New York, Vermont, and Minnesota reported significant sales increases, while states like Delaware and Kentucky struggled with a marked decline. Additionally, urban areas like New York Metro and Philadelphia showed particular strength in small business sales for September.
Understanding the Fiserv Small Business Index
The Fiserv Small Business Index is released on a monthly basis and is recognized for its comprehensive aggregation of real-time consumer spending data from a vast pool of American small businesses. Utilizing point-of-sale transaction information, it offers a detailed perspective rather than relying on traditional survey methods. With over 2 million participating businesses, Fiserv continues to set the standard for understanding consumer behavior within the small business sector.
About Fiserv
As a Fortune 500 entity, Fiserv, Inc. (NYSE: FI) focuses on revolutionizing the movement of money and information globally. With a commitment to excellence in various sectors including digital banking, card processing, and e-commerce, the company’s services help clients achieve successful outcomes. Fiserv is a proud member of the S&P 500® and has earned accolades as one of Fortune® World’s Most Admired Companies™. Visit the official Fiserv website for the latest updates and company news.
Frequently Asked Questions
What is the Fiserv Small Business Index?
The Fiserv Small Business Index measures consumer spending trends and behavior at small businesses across the U.S., providing valuable insights into economic activity.
How has consumer spending changed in September?
This September, consumer spending remained stable, with a slight increase in small business sales year-over-year, reflecting shifting patterns towards specialty trades and services.
What sectors are experiencing growth?
Professional, Scientific, and Technical Services are seeing significant growth, alongside other service categories like Web Search and Healthcare Services.
How do these trends affect small businesses?
Changes in consumer spending patterns can influence small businesses' strategies in marketing and inventory as they adapt to the evolving needs of their customers.
Why is the data from the Fiserv Index important?
The Fiserv Index provides businesses with key performance indicators to better understand market dynamics and drive decision-making in the retail and service sectors.
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