Fiserv’s Small Business Index Stays Flat in August – Digital Transactions

U.S. small businesses registered a mixed performance in August, with dollar volume climbing but transactions dropping for the tenth straight month, according to the August Small Business Index released early Thursday by the payments processor Fiserv Inc. It all added up to a Small Business Index reading of 145, flat with July and the third straight month at that level, though up two points from a year ago.

Adjusted for inflation, the index came to 109, down two points from a year ago, and flat with June and July, according to Fiserv.

Foot traffic was up 0.7% from a year earlier, but the near-term trend was less rosy, with traffic down 0.6%, registering a 0.8% dip in sales, according to the report. Indeed, the only retail sectors showing growth in August from July were gas stations and building materials. It added up to a transaction index reading of 103 for August, flat with July and June and down from 104 in August last year.

Looking at the index for key retail sectors broken out in Fiserv’s report, gas stations and fuel dealers stood out with an increase of 15.1% year-over-year in the reading for the sector. By contrast, food and beverage retailers saw a drop of 1.4%, the worst showing among the sectors measured. Among metro areas, the Dallas and Atlanta metro areas stood out with index increases of 5% and 4.7%, respectively.  Among key retail sectors, the restaurant business, which has become increasingly competitive among point-of-sale providers, saw a 0.3% drop year-over-year.

“For many small business categories, August reinforces a trend we’ve seen throughout much of the year: consumers are still spending, but they’re making fewer trips and becoming more deliberate with their purchases,” said Prasanna Dhore, Fiserv’s chief data officer, in a statement. “With traffic declining and households continuing to prioritize value, each customer visit matters more for small businesses.”