Small business retailer sales increased 1.6% month over month and 7.7% year over year.
Small and medium-sized businesses saw an increase in sales last month, recovering from the “slump” in March.
According to the Fiserv Small Business Index for April 2024, small business sales increased by 5.6% year-over-year (YoY) and 2.2% month-over-month (MoM). The seasonally adjusted index rose 4 points to 145.
Small business retailer sales increased 1.6% month over month and 7.7% year over year. Most retail subsectors saw significant month-over-month increases from March to April, including furniture (+4.9%), building materials (+3.8%), auto parts (+4.4%), and gas stations (3.1%) was recorded. Year-over-year growth was equally strong in these destinations.
“Consumer spending changed significantly in April, with a strong increase in service-based business spending, including professional services such as tax preparation, offsetting a slowdown in discretionary spending,” said Prasanna Dore, chief data officer at Fiserv. I did,” he said. “April was also a bright spot for retail, with sales at small retailers increasing 7.7% year-on-year compared to 2023.”
In April, the priority of personal consumption shifted significantly to services spending.Professional, scientific and technical services This was an increase of 7.0% compared to March and 16.4% compared to the same period last year. As the IRS tax filing deadline approached in April, demand for bookkeeping, accounting, and other related business services skyrocketed. Large and small construction projects also boosted demand for architectural, engineering, and surveying services from small and medium-sized businesses.
Spending in specialized trade Contractor This was an increase of 4.1% from the previous month and 4.0% from the previous year. Seasonal demand for swimming pool services, concrete and masonry contractors, and heating and cooling specialists led the sector’s gains in April.
Small businesses that collect discretionary spending include: restaurant Retail performance wasn’t as good in April as it has been in recent months. Especially in food service and bars. Sales growth slowed as consumer demand for lower-priced food increased. Restaurant spending was down 3.1% compared to March and 0.2% year over year. Fiserv said the decline in restaurant traffic has not been as pronounced, indicating that consumers are still visiting restaurants but are ordering cheaper items or choosing lower-cost establishments. He said that
