In May, the Fiserv Small Business Index remained stable at 145, indicating a steady small business environment. Despite growth in year-over-year sales, small business sales were flat compared to the previous month. Sales increased by 4.3% year-over-year and 0.2% month-over-month. Foot traffic also grew by 5.2% year-over-year, but saw a slight decline of 0.5% compared to April.
Nationally, small business retail spending was unchanged in May, with transactions increasing by 0.7% month-over-month. Food & Beverage retailers experienced the most significant spending expansion at 2.1%, followed by clothing, sporting goods, and health/personal care retailers. However, spending at general merchandise, auto parts, building materials, and furniture retailers declined in May.
Consumer spending continued to increase in May as well but consumers were more cautious with their discretionary purchases due to the slowdown in economic pace according to the Fiserv Small Business Index for May. The shift towards non-discretionary spending was evident with growth at grocery stores outpacing that at restaurants despite restaurant spending being up 4.1% year-over-year and foot traffic decreasing by 1.2% compared to April
