October was a standout month for small business growth, with sales rising 7% over the previous year, primarily driven by gains in retail and service-based sectors. According to Fiserv’s Small Business Index for October 2024, both small business sales and transactions increased year-over-year. On a month-over-month basis, October sales also grew by 3.7%, with transactions up 3% compared to September.
The Fiserv Small Business Index, a seasonally adjusted indicator, reached an all-time high of 147 in October, marking a six-point jump from the previous month and the highest level since the baseline in January 2019. Retail trade led this surge with an index value of 150, up five points from September. Year-over-year retail sales rose by 5.8%, and transactions grew by 9.2%, though the average ticket size declined by 3.3% as consumers favored smaller purchases. Notable growth sectors within retail included general merchandise (+11.4%), food and beverage (+8.4%), furniture (+7.8%), and health and personal care (+6.8%).
Every month, retail rebounded after a slight dip in September, with October retail sales increasing by 3.6% and transactions up by 3.1%. Food and beverage (+3.2%), building materials (+4.2%), furniture (+4.3%), and health and personal care (+5.4%) showed particularly strong gains compared to the previous month.
Jennifer LaClair, head of merchant solutions at Fiserv, noted that October saw strong consumer spending, with increases in sales and foot traffic. This is encouraging news for small businesses as they approach the holiday season.
Service-based small businesses also saw growth, with sales increasing by 7.4% year over year and 4.0% month over month. Professional, scientific, and technical services led the category with a 13.7% annual increase, while specialty trade contractor sales were up by 7.6%. Both categories continued to show positive month-over-month growth.
The restaurant sector, indexed at 127 for October, saw notable year-over-year increases in total sales (+5.9%) and foot traffic (+7.6%), although average ticket sizes declined slightly (-1.7%). Restaurant sales rose 1.3% month over month, and transactions rebounded by 2.4% from slight decreases in September.
Across the U.S., every state reported month-over-month growth in small business sales for October. Delaware (+8.1%), Michigan (+7.9%), Utah (+7.4%), Georgia (+7.1%), and Kentucky (+6.8%) led the way. Philadelphia and Atlanta stood out among large cities, with the highest month-over-month growth rates at +5.6% and +5.1%, respectively. They also topped year-over-year growth, with Philadelphia at +9.2% and Atlanta at +8.9%.
Overall, October’s data reflects a robust period for small businesses, driven by consumer demand in retail and a steady rise in services. This bolsters optimism for continued growth as the holiday season approaches.
