Consumers shifted small business spending away from home-related retail in September
Small businesses have seen steady consumer spending, but the furniture and home furnishings category didn't reap the rewards in September.
MILWAUKEE, Wis. — Overall consumer spending has been on the uptick, according to the latest Fiserv Small Business Index, but furniture and home furnishings retail continues to struggle.
In September, the seasonally adjusted index — an indicator of the pace and mix of consumers spending at national, state, city and industry levels — was 141, reflecting the third straight month of steady consumer spending.
On a year-over-year basis, small business sales rose 1.8%, and total transactions were up 4%. Month-over-month sales, however, were up just 0.1%, and transactions fell by 0.6%.
During the month, said Prasanna Dhore, chief data officer at Fiserv, consumers diverted spending to the specialty trade, technology, education and healthcare, while retail and restaurant spending slowed. Retail sales dropped 1.7% month-over-month, which was attributed to less foot traffic (down 1.3%) and smaller average ticket size (down 4%).
Among the retail categories tracked, furniture, home furnishings, electronics and appliance retailers fell by 2% month-over-month, making it the second highest declining category after gasoline and fuel dealers. Year-over-year, however, the furniture/furnishings retail category is up a modest 0.8%.
In contrast, general merchandise retailers showed a 6.2% year-over-year gain through September, and clothing, shoe and jewelry retailers are up 1.4% vs. 2023.
Looking at the overall trends from the survey, Jennifer LaClair, head of merchant solutions, said, “This month’s index shows that consumer spending is holding steady, a positive sign as small business owners flip their calendars to the fourth quarter and get ready for the 2024 holiday season.”
The Fiserv Small Business Index is published monthly and is derived from point-of-sale transaction data, including card, cash and check transactions in-store and online across more than 2 million U.S. small businesses.
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