The Fiserv Small Business Index for October 2024, a key economic indicator that measures the health and growth of small businesses across the United States, showed strong growth. This is a positive and encouraging sign as businesses head into the busiest time of the year!
The national index surged by six points to 147, marking the most significant monthly gain in over two years. Year-over-year sales saw a remarkable 7.1% increase, with transactions rising 8.8%. Regarding month-over-month results, sales were up 3.7%, and transactions were up 3%. Average ticket size also increased by 0.7%, indicating not only higher foot traffic but also larger purchases being made.
From a national perspective, the retail sector emerged as the primary growth driver, contributing 19% to the total monthly growth, with a 3.6% increase month-over-month. Furniture, electronics, and general merchandise stood out, with the latter growing 1.9% month-over-month and an impressive 11.4% year-over-year. Other top-performing sectors include restaurants, up 1.3% month-over-month, and professional services, which showed consistent growth of 1.3% month-over-month and a strong 13.7% year-over-year.
The states with the highest growth month-over-month include Delaware, up 8.1%; Michigan, up 7.9%; and Utah, up 7.4%. Major metropolitan areas also experienced significant gains, with cities like Philadelphia seeing a 5.6% month-over-month increase, and Chicago following closely with 3.9%.
Inflation has been down to 2.4% since September, a trend positively influencing consumer confidence. Their willingness to spend is on the rise, supported by increased savings rates and real wage growth. This optimism has translated into early holiday shopping, boosting in-store traffic and reversing the lackluster results seen during last year’s holiday season.
With consumers feeling more secure about their finances, small businesses are set to benefit from a robust end-of-year shopping season. Entrepreneurs should leverage this positive momentum by focusing on customer engagement, maximizing visibility, and preparing for an active and profitable holiday.
