Fiserv: Small business sales see year-over-year gains in October
Retail led the way for small business sales in October, which increased 7% compared to last year.
That’s according to Fiserv’s Small Business Index for October 2024, which shows that small business sales (+7.1%) and total transactions (+8.8%) grew compared to 2023. Month-over-month sales (+3.7%) and transactions (+3.0%) also rose significantly compared to September.
The seasonally adjusted Fiserv Small Business Index increased six points to 147, marking one of the largest monthly gains and the highest overall Index value since the baseline period of January 2019.
Nationally, the Fiserv Small Business Index for retail trade was 150, a five-point increase from September. Year-over-year sales (+5.8%) and transactions (+9.2%) grew as average ticket sizes (-3.3%) continued to decline. The fastest growing retail categories year-over-year were general merchandise (+11.4%), food and beverage (+8.4%), furniture (+7.8%) and health and personal care (+6.8%).
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On a monthly basis, retail sales (+3.6%) rebounded after a slight dip in September, while transactions also grew (+3.1%). The strongest month-over-month gains were seen within food and beverage (+3.2%), building materials (+4.2%), furniture (+4.3%) and health and personal care (+5.4%).
“The Fiserv Small Business Index delivers a timely and detailed look at the way consumers are spending at small businesses,” said Jennifer LaClair, head of merchant solutions at Fiserv. “This month’s index shows that consumer spending was strong in October, with healthy increases to both total sales and foot traffic, a welcome sign for small businesses as they head deeper into the holiday season.”
Food services and drinking places, which includes restaurants, indexed at 127 in October, a 2-point increase compared to September. Year-over-year, restaurants saw growth in both total sales (+5.9%) and foot traffic (+7.6%), although average ticket sizes continued to decline (-1.7%) compared to 2023. On a monthly basis, both restaurant sales (+1.3%) and transactions (+2.4%) grew, rebounding from small declines in September.
Service-based small business sales grew compared to 2023 (+7.4%) and compared to September of 2024 (+4.0%). At the category level, professional, scientific, and technical services sales grew year-over-year (+13.7%) and on a monthly basis (+1.3%). Specialty trade contractor sales grew year-over-year (+7.6%) and month-over-month (+1.3%).
When it came to regional trends in the Small Business Index for October, all 50 U.S. states saw small business sales growth month-over-month. Delaware (+8.1%), Michigan (+7.9%), Utah (+7.4%), Georgia (+7.1%) and Kentucky (+6.8%) showed the most growth compared to September. Philadelphia (+5.6%) and Atlanta (+5.1%) were the strongest performing large cities for small business sales growth month-over-month. These cities also topped year-over-year sales growth for October at +9.2% and +8.9%, respectively.
