Small business sales slowed in June in most categories
Small business sales grew slightly year-over-year in June, but declined compared to May.
According to Fiserv’s latest Small Business Index, small business sales grew 1.6% year-over-year, and declined 2.9% month-over-month.On a year-over-year basis, both small business sales (+1.6%) and transactions (+4.4%) grew compared to June 2023, though the pace of growth is slowing. Small business sales (-2.9%) and transactions (-1.5%) saw declines month-over-month. The seasonally adjusted index for June declined to 140 from 145 in May.
General Merchandise (+8.5%) outpaced all retail subsectors in yearly growth, followed by gas stations (+2.8%) and health and personal care (+2.8%). Motor vehicle and parts dealers (-4.1%) and furniture/electronics/appliance retailers (-1.2%) saw total sales decline year-over-year.
On a monthly basis, general merchandise (+0.3%) was the only retail category to grow total sales from May to June. Gas stations (-4.5%), motor vehicle and parts dealers (-5.9%), and health and personal care (-7.2%) saw the sharpest declines month-over-month. Wholesale trade, which tracks closely to retail outcomes, also experienced a monthly slowdown (-4.0%).
Small business restaurant sales (+3.6%) and transactions (+2.3%) continue to grow year-over-year, though growth is also slowing. Average ticket sizes at small restaurants grew (+1.3%). Food and Beverage stores (which includes grocery) grew sales (+4.6%) and transactions (+8.1%) year-over-year.
Month-over-month, Fiserv noted that total restaurant sales (-1.2%) and transactions (-1.9%) declined. Average ticket sizes at restaurants were up slightly (+0.7%) from May, potentially signaling that rising food prices are slowing out-of-home food spending. Grocery also softened (-0.3%) month-over-month.
“As the quarter came to a close, consumers throttled back both spending and foot traffic across retail, restaurants and other service-based businesses,” said Prasanna Dhore, chief data officer at Fiserv. “The slowdown was driven by a combination of lower average ticket sizes—the result of abating inflation and budget-conscious consumers—and a series of short-term seasonal demand shifts.”
Other insights from the June Small Business Index include:
- Professional, scientific, and technical services saw growth in sales (+9.0%) and transactions (+7.7%) year-over-year. Month-over-month sales declined (-2.9%) from May, although transactions were mostly flat (-0.3%).
- Specialty trade contractors grew sales (+1.6%) and transactions (+3.8%) year-over-year. Month-over-month sales (-2.1%) and transactions (-2.8%) tapered off as demand for general carpentry and light construction cooled.
- Additional strong year-over-year growth categories included web search portals, libraries and related services (+22.9%) and amusement/gambling/recreation (+13.4%); the sharpest annual declines were in real estate (-14.2%) and transportation equipment manufacturing (-14.0%).
- Web search portals, libraries and related services (+2.4%), amusement/recreation/gambling (+1.5%) and insurance (+1.4%) were the fastest growing categories month-over-month. Spending slowed most in truck transportation (-8.9%) compared to May.