In April 2024, small business sales experienced a significant growth, with a 5.6% year-over-year (YoY) increase and a 2.2% month-over-month (MoM) rise in sales. The Fiserv Small Business Index saw a four-point increase to 145, indicating that small businesses are on the rise.
Small business retailers had a particularly strong month, with a 1.6% MoM growth and a 7.7% YoY increase in sales. Furniture, Building Materials, Motor Vehicle Parts, and Gas Stations all saw strong MoM increases from March to April.
Consumer spending patterns shifted significantly in April, with an increase in service-based business spending offsetting a slowdown in discretionary spending. Professional services like tax preparation experienced a 7.0% increase over March and an impressive 16.4% YoY growth due to the IRS tax filing deadline.
Specialty Trade Contractors also saw a boost in demand, with a 4.1% MoM and 4.0% YoY growth driven by projects like swimming pool services and heating/cooling specialists for the month of April.
On the other hand, businesses capturing discretionary spending such as restaurants did not fare as well compared to previous months. Food Services and Drinking Places saw a slowdown in sales growth, with restaurant spending decreasing by 3
