Fiserv Small Business Index™ for February 2024: Small Business Sales Leap on Strong Consumer Spending
Fiserv Small Business Index rose to 142 in February 2024, showing a 3-point increase from January. Small business sales saw a 2.6% month-over-month and 6.6% year-over-year growth, with Retail and Food Services sectors performing exceptionally well.
The uptick in the Fiserv Small Business Index to 142, marking a 3-point increase, is a positive signal of the economic health and consumer confidence within the small business sector. This improvement suggests a robust demand environment for small businesses, which can be a bellwether for broader economic trends. The reported growth in small business sales, both month-over-month and year-over-year, indicates sustained consumer spending and could be reflective of broader economic recovery post any downturns.
Special attention should be given to the Retail sector and Food Services and Drinking Places due to their significant sales growth. The high volume of foot traffic contributing to retail sales is particularly noteworthy, as it may signal a shift in consumer behavior towards in-person shopping experiences. This could have implications for the commercial real estate market, as well as for companies that provide in-store technologies and services.
From a financial perspective, the growth in the Fiserv Small Business Index is indicative of potential investment opportunities within the small business segment. Investors might look at companies that provide services and products to these growing sectors, such as point-of-sale systems, supply chain management solutions and marketing platforms. The year-over-year sales growth figures suggest that these businesses are not just recovering from any previous slumps but are actually expanding, which could translate into increased profitability and, consequently, investor interest.
Additionally, the performance of Specialty Trade Contractors reflects a healthy construction and renovation market, which could have positive ripple effects on related industries such as building materials, home improvement retailers and real estate development. The data might also influence credit and lending policies for small businesses, as financial institutions reassess the risk profile of this segment in light of the positive trend.
The data released by Fiserv is a microcosm of the larger economic environment. A 6.6% year-over-year increase in small business sales is a strong indicator of economic vitality, especially when considering the role of small businesses in job creation and innovation. The sector-specific growth, particularly in Retail and Food Services, suggests a discretionary spending pattern among consumers that could predict an upward trend in GDP growth.
However, it is also important to monitor inflationary pressures that could arise from increased consumer spending. While the index shows a positive trend, the long-term sustainability of this growth could be challenged by rising costs and potential interest rate adjustments by the Federal Reserve. Analysts should watch for any signs of overheating in the economy that could lead to corrective measures, which in turn could affect small business growth trajectories.
03/04/2024 - 08:30 AM
Fiserv Small Business Index increases to 142, up 3 points from January 2024
Small business sales grew +2.6% month-over-month and +6.6% year-over-year
MILWAUKEE --(BUSINESS WIRE)--
Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, has published the Fiserv Small Business Index™ for February 2024. The Fiserv Small Business Index is an indicator of the performance of small businesses in the United States at national, state, and industry levels.
Nationally, the seasonally adjusted Fiserv Small Business Index increased 3 points to 142. Small business sales grew +2.6% month-over-month and +6.6% year-over-year.
“Consumer spending accelerated through February, delivering a significant boost to small business sales,” said Prasanna Dhore, Chief Data Officer at Fiserv. “Small businesses in the Retail sector had a particularly strong month, with a high volume of foot traffic helping drive 3.7% month-over-month and 7.2% year-over-year sales growth. We also saw spending at Food Services and Drinking Places rebound after a lackluster January, with sales up 4.1% month-over-month.”
Retail Spotlight
Retail small businesses delivered strong results in February, with an index of 149, reflecting a +6 point gain over January. Sales activity grew a seasonally adjusted +3.7% over January and +7.2% year-over-year. Sales growth was boosted by gains in foot traffic, with retail small business transaction numbers at a five year high.
Additional Small Business Insights
Food Services and Drinking Places had an impressive rebound in February, jumping +5 points over the previous month to an index of 127. The gains follow a lackluster January, which was impacted by harsh weather in addition to the natural downshift from the holiday season. In February, small business customers devoted the biggest share of their wallets and their incremental spend to this subsector. Spending was up +4.1% over January and +6.3% compared to last year.
Specialty Trade Contractors had a February index of 149, a +3 point increase over January. Month-over-month sales expanded by +2.3% . Growth compared to February 2023 was even more substantial, up +4.7% . The Specialty Trade Contractors subsector includes service providers, such as carpentry and masonry, roofing, electrical, and heating and plumbing specialists.
About the Fiserv Small Business Index™
The Fiserv Small Business Index is published during the first week of every month and differentiated by its direct aggregation of consumer spending activity within the U.S. small business ecosystem. Rather than relying on survey or sentiment data, the Fiserv Small Business Index is derived from point-of-sale transaction data, including card, cash, and check transactions in-store and online, across approximately 2 million U.S. small businesses.
Benchmarked to 2019, the Fiserv Small Business Index provides a numeric value measuring consumer spending, with an accompanying transaction index measuring customer traffic. Through a simple interface, users can access data by region, state, and/or across business types categorized by the North American Industry Classification System (NAICS). Computing a monthly index for 16 sectors and 34 sub-sectors, the Fiserv Small Business Index provides a timely, reliable and consistent measure of small business performance even in industries where large businesses dominate.
To access the full Fiserv Small Business Index visit fiserv.com and click on “Fiserv Small Business Index” or visit fiserv.com/FiservSmallBusinessIndex.
About Fiserv
Fiserv, Inc. (NYSE: FI), a Fortune 500 company, aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale and business management platform. Fiserv is a member of the S&P 500® Index and has been recognized as one of Fortune® World’s Most Admired Companies™ for 9 of the last 10 years. Visit fiserv.com and follow on social media for more information and the latest company news.
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Source: Fiserv, Inc.
What is the Fiserv Small Business Index for February 2024?
The Fiserv Small Business Index for February 2024 increased to 142, up 3 points from January.
How much did small business sales grow month-over-month in February 2024?
Small business sales grew by 2.6% month-over-month in February 2024.
What was the year-over-year growth rate of small business sales in February 2024?
Small business sales saw a 6.6% year-over-year growth in February 2024.
Which sector experienced significant sales growth in February 2024?
The Retail sector had a strong month in February 2024, with sales growing by 3.7% month-over-month and 7.2% year-over-year.
How did Food Services and Drinking Places perform in February 2024 compared to January?
Food Services and Drinking Places had a remarkable rebound in February 2024, with sales up by 4.1% month-over-month after a lackluster January.
What was the performance of Specialty Trade Contractors in February 2024?
Specialty Trade Contractors saw a 2.3% month-over-month sales expansion and a 4.7% growth compared to February 2023.
