NEW YORK – Consumers spent more at small businesses in July, a rebound fueled by strong sales of general merchandise and health and personal care products.
The Fiserv Small Business Index rose 1 point to 141 after a 4 point decline in June. The figure is derived from point-of-sale transaction data, including card, cash, and check transactions in-store and online across about 2 million U.S. small businesses.
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“Following modest declines in June, consumer spending rebounded nicely in July to help many small businesses start the second half of the year strong.” said Jennifer LaClair, head of merchant solutions at Fiserv.
Compared with July of last year, sales rose 3.5% and number of transactions rose 3.3%.
“Consumer spending patterns continue to shift, most notably with retail spend experiencing a decisive bounce back compared to June,” said Prasanna Dhore, chief data officer at Fiserv. “Specialty trade and professional services also performed very well due to seasonal demand and stabilizing inflation rates.”
Retail spending rose 4.6% and retail transactions jumped 5.8%. General merchandise was the strongest category, up 10.9%. Health and personal care products rose 8.6%, building equipment and garden materials rose 6.2%, food and beverage sales rose 4.9% and furniture, electronics and appliances rose 4.7%.
One weak spot was restaurant sales, which slipped 1.6% despite seeing modest growth in foot traffic, up 0.7%. Consumers dining out have also seen a significant decrease in average check size, down 2.4% compared to July 2023, although it was not clear if the decrease came from lower prices or diners ordering less.