In July, consumer spending at small businesses surged, mainly driven by strong sales in general merchandise, health, and personal care products. The Fiserv Small Business Index experienced a 1-point rise to 141, a notable recovery after a 4-point decline in June. As Jennifer LaClair from Fiserv put it, "Consumer spending rebounded nicely in July to help many small businesses start the second half of the year strong."
Sales in July were up 3.5% compared to the same month last year, with transaction numbers increasing by 3.3%. Prasanna Dhore, Fiserv's chief data officer, noted, "Specialty trade and professional services also performed very well due to seasonal demand and stabilizing inflation rates." Retail spending rose by 4.6%, with transactions jumping 5.8%. The general merchandise category led the way with a 10.9% spike.
Despite the overall positive trend, there were weak spots in the restaurant sector. Restaurant sales declined by 1.6%, even as foot traffic increased slightly by 0.7%. There was also a notable 2.4% decrease in the average check size, but it remains unclear if this was due to lower prices or reduced customer spending. Overall, the spending rebound in various sectors indicates a positive shift for small businesses as they navigate the second half of the year. (This story was generated by Newser's AI chatbot. Source: the AP)
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