In April 2024, small business retailers experienced a 1.6% month-over-month (MoM) sales growth and a 7.7% year-over-year (YoY) increase, marking a significant improvement from the slower sales in March. The Fiserv Small Business Index reported an overall growth of 5.6% YoY and 2.2% MoM, with the seasonally adjusted index rising by four points to 145.
Small businesses in various retail subsectors also saw strong increases in sales from March to April, including Furniture (+4.9%), Building Materials (+3.8%), Motor Vehicle Parts (+4.4%), and Gas Stations (+3.1%). This positive trend was consistent with the strong YoY trajectory experienced by these businesses.
Consumer spending patterns showed a shift towards service-based businesses in April, with an increase in spending on professional services such as tax preparation due to the IRS tax filing deadline falling within the month. Professional, Scientific, and Technical Services saw a 7.0% MoM and a 16.4% YoY growth, highlighting the increased need for accounting and business-related services.
Small businesses in the construction sector also experienced growth, with Specialty Trade Contractors witnessing a 4.1% MoM and 4.0% YoY increase in spending due to projects like swimming pool services and heating/cooling specialists driving demand in this sector.
On the other hand, businesses capturing discretionary spending such as restaurants did not perform as well in April compared to previous months as consumers shifted towards lower-priced options due to changing preferences for dining out choices that are more budget friendly but still satisfying their taste buds while keeping their wallets full.
Overall, small businesses continued to experience growth across different sectors despite some fluctuations in consumer behavior caused by shifting preferences for certain products or services.
It is important for small business owners to keep track of consumer trends and adjust their offerings accordingly to stay competitive and continue attracting customers.
