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Transforming Insights: How AI Legalese Decoder Can Enhance Understanding of the Fiserv Small Business Index® Steady for September Amid Shifting Consumer Spend Towards Services

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Overview of the Fiserv Small Business Index – September 2024

The Fiserv Small Business Index for September 2024 has shown remarkable stability, holding steady at 141. This continued stability indicates consistent consumer spending patterns at small businesses across the United States, which is particularly encouraging as we approach the busy fourth quarter of the year. Below are the key highlights that illustrate the current landscape:

  • Small business sales have experienced year-over-year growth of 1.8%, while transaction volumes increased by an impressive 4.0%.
  • Month-over-month, sales rose slightly by 0.1%, although there was a minor decline in transactions, which dropped 0.6%.
  • While spending in retail and restaurant sectors showed signs of cooling off, the service sectors have demonstrated notable growth.
  • The Professional, Scientific, and Technical Services sector saw substantial year-over-year growth, with sales up by 11.9% and transactions increasing by 8.1%.
  • Regionally, the states of New York, Vermont, and Minnesota displayed the fastest growth rates compared to August.

This index serves as a critical indicator of consumer spending patterns and small business performance across diverse sectors and regions, providing valuable insights for stakeholders.

Positive Insights

  • Consistent consumer spending at small businesses with the Fiserv Small Business Index holding firm at 141.
  • Year-over-year sales growth for small businesses at 1.8%.
  • Year-over-year transaction growth of 4.0% points to positive consumer engagement.
  • Strong year-over-year performance in Professional, Scientific, and Technical Services with an 11.9% increase in sales.
  • Notable regional growth observed in New York (3.5%), Vermont (2.4%), and Minnesota (1.7%) compared to August.

Negative Trends

  • The Retail Trade Index has suffered a decline of 2 points from August levels.
  • There was a month-over-month decline in Retail Trade sales of 1.7% and transactions decreased by 1.3%.
  • Food Services and Drinking Places Index showed a decrease of 1 point compared to the previous month.
  • Month-over-month declines in restaurant sales (-1.0%) and transactions (-0.1%) were also noted.
  • Noteworthy declines in small business sales were observed in Delaware (-5.6%), Alaska (-3.2%), and Kentucky (-2.2%).

Expert Insights

The Fiserv Small Business Index for September 2024 reveals crucial insights into consumer spending behavior, suggesting strong resilience amidst challenges. The steady index reading of 141 signifies stability, which could foster optimism as small business owners prepare for the critical fourth quarter and the holiday shopping season. Key trends include:

  • Year-over-year growth in sales (+1.8%) and transactions (+4.0%) suggests increasing consumer engagement.
  • A shift in consumer spending from traditional retail to service sectors.
  • Noteworthy cooling off in retail and restaurant spending, highlighting a shift in consumer preferences.
  • Exceptional growth within the Professional, Scientific, and Technical Services sector (+11.9% YoY).

This data presents a dynamic environment for small businesses, indicating opportunities in service-oriented sectors while underlining the necessity for adaptability in the face of changing consumer habits. For investors, remaining aware of these trends is crucial for making informed decisions.

The Fiserv Small Business Index also sheds light on regional disparities in consumer behavior and spending patterns. The rising expenditure on services—specifically in technology, education, and healthcare—signals evolving consumer priorities that could yield new opportunities for businesses within these industries while presenting significant challenges for conventional retail establishments. Noteworthy observations include:

  • The Retail Trade Index noticed a decrease of 2 points, now at 144, indicating potential issues in consumer engagement in that sector.
  • A decline in the Food Services Index by 1 point prompts a reevaluation of customer engagement strategies.
  • Impressive growth in Web Search, Libraries, and Information Services sector, showing resilience with a 21.5% increase year-over-year.
  • Regional variances highlight the necessity of geographical consideration in investment strategies, with states like New York showing robust growth (3.5% MoM).

Investors must critically evaluate these ongoing trends and their implications on their portfolios, particularly how small-cap stocks in emerging service sectors compare with those in traditional retail. The regional growth highlights the importance of a diversified approach to small business investments.

Fiserv Small Business Index remains unchanged at 141

Small business sales have shown a year-over-year increase of 1.8% and a month-over-month increase of 0.1%4.0% compared to last year, but saw a decline of 0.6% month-over-month.

MILWAUKEE–(BUSINESS WIRE)– Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, has published its Fiserv Small Business Index for September 2024. This index serves as an indicator of consumer spending pace and mix at small businesses within the United States at the national, state, and industry levels.

“The Fiserv Small Business Index offers a timely and detailed perspective on consumer spending trends at small businesses,” stated Jennifer LaClair, Head of Merchant Solutions at Fiserv. “This month’s index highlights that consumer spending is holding steady—a promising signal for small business owners as they prepare for the crucial fourth quarter and the upcoming holiday season.”

On a national level, the seasonally adjusted Fiserv Small Business Index reported a figure of 141 for September, reflecting consistent consumer spending over the past three months. Year-over-year, both small business sales (+1.8%) and total transactions (+4.0%) have positively compared to the previous year, while month-over-month sales increased by 0.1% and transactions saw a slight decline of 0.6%.

“September marked a steady advancement in small business sales, demonstrating resilience in consumer spending patterns despite significant shifts in spending behavior,” remarked Prasanna Dhore, Chief Data Officer at Fiserv. “Consumers have notably redirected their spending towards sectors including specialty trade, technology-focused services, education, and healthcare services, while growth in retail and restaurant sectors has tapered.”

Retail and Restaurant Spending Trends

The Fiserv Small Business Index indicates the Retail Trade segment has slightly declined, registering a 144—down two points from previous data collected in August. Year-over-year, retail sales increased notably by 0.6%, and transactions rose by 4.6%; however, average transaction ticket sizes have decreased by 4.0%.

Retail spending has remained predominantly positive on a year-over-year scale, barring declines observed in Gasoline Stations (-7.7%) and Motor Vehicle and Parts Dealers (-1.3%). The most rapidly growing retail categories included General Merchandise with a sales uptick of (+6.2%), Food and Beverage Retailers (+4.2%), and Health and Personal Care Retailers (+3.8%).

Month-over-month, the Retail Trade segment cooled by 1.7%, attributed largely to diminished foot traffic (-1.3%). Conversely, sales in Building Materials and Garden Equipment witnessed slight growth, increasing by 0.1%, whereas Gasoline and Fuel Dealers and Food and Beverage Retailers suffered the most significant declines.

The Food Services and Drinking Places sector, which encompasses restaurants, registered an index of 125 for September, marking a decline of one point relative to August. Year-over-year, restaurants demonstrated solid growth in total sales (+2.6%) and foot traffic (+3.3%); however, average ticket size saw a minor dip of (-0.7%). Month-over-month figures revealed decreases in restaurant sales (-1.0%), transactions (-0.1%), and average ticket sizes (-0.9%).

Services Sector Growth

  • The Professional, Scientific, and Technical Services sector has shown continued sales growth, increasing by 11.9% and transactions rising by 8.1% year-over-year. Month-over-month sales illustrated a growth of 2.1% despite a slowdown in transactions with a decrease of (-0.4%) compared to August.
  • Specialty Trade Contractor sales demonstrated a year-over-year growth of (+4.4%) with accompanying transaction growth of (+2.4%). Month-over-month sales grew (+2.8%) even as transaction volumes experienced declines of (-1.4%).
  • Additional year-over-year sales increases were noted across categories—Web Search, Libraries, and Information Services (+21.5%); Personal and Laundry Services (+2.8%); and Utilities (+2.3%); all of which signaled strong monthly growth within Ambulatory Healthcare (+4.7%) and Educational Services (+3.9%).

Regional Trends and Performance

  • States such as New York (+3.5%), Vermont (+2.4%), and Minnesota (+1.7%) displayed some of the fastest growth rates compared to their previous August metrics. Conversely, states suffering steep declines included Delaware (-5.6%), Alaska (-3.2%), and Kentucky (-2.2%).
  • The Metropolitan areas of New York (+3.6%) and Philadelphia (+3.5%) ranked as the top-performing large cities in small business sales during the month.

About the Fiserv Small Business Index™

The Fiserv Small Business Index is published during the first week of each month. Unique in its methodology, the index aggregates consumer spending activity directly from the small business landscape in the United States. Rather than relying on survey responses or sentiment metrics, this index is informed by real-time point-of-sale transaction data, covering card, cash, and check transactions both in-store and online across approximately 2 million small businesses. This includes a wide range of participants utilizing the Clover point-of-sale and business management platform.

The index is benchmarked against 2019 statistics, producing a numeric value that measures consumer spending habits, complemented by a transaction index that estimates customer foot traffic trends. Users are able to seamlessly access data by geographic region, state, or across various business categories distinguished by the North American Industry Classification System (NAICS). With computations conducted monthly across 16 sectors and 34 sub-sectors, the Fiserv Small Business Index provides timely and reliable assessments of small business performance, even within sectors historically dominated by larger corporations.

To access the complete Fiserv Small Business Index, please visit fiserv.com/FiservSmallBusinessIndex.

About Fiserv

Fiserv, Inc. (NYSE: FI), a Fortune 500 powerhouse, is committed to facilitating the movement of money and information in transformative ways. As a leader in payments and financial technology, Fiserv assists clients in achieving superior outcomes through unwavering dedication to innovation and excellence across various domains including account processing, digital banking solutions, and merchant services. The company holds a notable position in the S&P 500® Index and has consistently been acknowledged as one of Fortune® World’s Most Admired Companies™, recognized for nine of the last ten years. For comprehensive company information and the latest news updates, visit fiserv.com or engage with us on social media platforms.

Frequently Asked Questions (FAQ)

What was the Fiserv Small Business Index for September 2024?

The Fiserv Small Business Index for September 2024 maintained a stable value at 141, reflecting steady consumer spending patterns at small businesses across the United States.

How did small business sales and transactions change year-over-year according to Fiserv?

According to the latest Fiserv data, there was a year-over-year growth in small business sales of 1.8%, while transactions witnessed an increase of 4.0% relative to the performance observed in 2023.

Which sectors showed growth in the September 2024 Fiserv Small Business Index?

The latest index highlights that the services sectors, particularly Professional, Scientific, and Technical Services, experienced remarkable growth, with sales increasing by 11.9% and transactions growing by 8.1% year-over-year.

How did retail and restaurant spending perform in the September 2024 Fiserv Small Business Index?

In September 2024, retail and restaurant spending exhibited signs of cooling, with the Retail Trade Index showing a two-point decline, and the Food Services and Drinking Places Index decreasing by one point compared to August’s figures.

Which states recorded the fastest growth in small business sales according to the September 2024 Fiserv report?

As reported in September 2024, the states of New York (3.5%), Vermont (2.4%), and Minnesota (1.7%) shown the fastest growth in small business sales relative to their performances in August.

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