The Fiserv Small Business Index for September 2024 revealed steady consumer spending, a positive indicator as small businesses prepare for the holiday season. The national index was 141, marking three consecutive months of consistent activity, with year-over-year sales up 1.8% and transactions increasing by 4.0%. While month-over-month sales were nearly flat at 0.1%, transactions dipped slightly by 0.6%.
Jennifer LaClair, Head of Merchant Solutions at Fiserv, noted that strong consumer spending is encouraging for small business owners as they approach the fourth quarter. This resilient spending pattern indicates a stable business environment leading into the 2024 holiday season.
Additionally, the report highlighted notable shifts in consumer behavior, with spending increases in specialty trade, technology, education, and healthcare services, while retail and restaurant sales growth slowed.
Retail trade saw a slight decline in September, with the index dropping to 144, down two points from August. However, year-over-year sales and transactions still posted growth. The decline was primarily driven by reduced foot traffic (-1.3%) and lower average ticket sizes (-4.0%). Gasoline stations (-7.7%) and motor vehicle dealers (-1.3%) faced notable year-over-year declines, though categories such as general merchandise (+6.2%) and food and beverage retailers (+4.2%) showed resilience.
Restaurants also experienced a cooling period. The index for food services and drinking places dropped to 125, a 1-point decline from August. Despite yearly growth in sales (+2.6%) and foot traffic (+3.3%), restaurants saw slight monthly declines in sales (-1.0%) and transactions (-0.1%).
In contrast, the services sector displayed strong growth, particularly in professional, scientific, and technical services, which reported an 11.9% increase in sales and an 8.1% rise in transactions year-over-year. On a month-over-month basis, services like specialty trade contractors (+2.8% sales growth) and healthcare services also showed robust performance.
Ambulatory healthcare services (+4.7%) and educational services (+3.9%) led month-over-month growth in the services sector, reflecting shifting consumer priorities toward essential and educational services.
Geographically, states such as New York (+3.5%), Vermont (+2.4%), and Minnesota (+1.7%) showed the highest month-over-month growth. Conversely, Delaware (-5.6%), Alaska (-3.2%), and Kentucky (-2.2%) saw the steepest declines. New York (+3.6%) and Philadelphia (+3.5%) were the strongest metropolitan areas in September’s small business sales.
Published monthly, the Fiserv Small Business Index provides a comprehensive view of consumer spending at small businesses nationwide. The index aggregates point-of-sale transaction data from 2 million U.S. small businesses, offering a reliable measure of small business performance across various sectors. Data is available by region, state, and industry type, allowing for detailed insights into consumer trends.
For more information on the Fiserv Small Business Index, visit fiserv.com/FiservSmallBusinessIndex.
