Latest news with #EconomicTrends
Globe and Mail
04-08-2025
- Business
- Globe and Mail
Small Business Sales Tick Up in July, Driven by Higher Average Ticket Sizes
Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, has published the Fiserv Small Business Index for July 2025, with the seasonally-adjusted Index rising 1 point to 149. Year-over-year sales (+3.6%) and transactions (+3.0%) remained strong, signaling the continued resilience of consumer spending. Average ticket sizes (+0.7%) also grew compared to 2024. Month-over-month sales (+1.0%) grew, reversing a three-month trend of softening consumer spend. Average tickets (+0.9%) rose compared to June, while foot traffic (+0.1%) remained relatively flat. 'July brought modest monthly sales growth for small businesses, but those gains were largely driven by higher average tickets, likely resulting from continued inflationary pressure,' said Prasanna Dhore, Chief Data Officer, Fiserv. 'Economic pressures continue shifting spending patterns as well. Consumers are spending more on essentials, while discretionary is growing at a much slower pace.' Key Takeaways Consumer Spending Increased over June, But Foot Traffic Did Not – July's month-over-month sales growth (+1.0%) broke a multi-month slump. However, with transaction growth nearly flat (+0.1%), consumers weren't visiting small businesses more in July, they were just spending more on purchases when they did. For example, retail sales growth (+1.1%) in July 2025 compared to June 2025 was directly attributable to an increase in average ticket size (+1.1%). Essentials Outpace Discretionary (Again) – Sales continued to grow significantly across Essentials, rising month-over-month (+1.5%) and year-over-year (+6.1%). Discretionary sales grew, but at a slower pace month-over-month (+0.5%) and year-over-year (+1.1%). This shift comes with higher costs for consumers as average tickets for Essentials are rising significantly month-over-month (+1.4%) and year-over-year (+3.0%). Restaurants Reflect Consumer Caution – Restaurant visits dipped for the third straight month (-0.3%), dragging sales down (-0.9%) compared to June. When adjusting for inflation, sales declined (-1.1%) compared to June. As a bellwether for household budget flexibility, declining restaurant sales in July signal consumers continuing to tighten up. Despite the slowdown compared to June, restaurant sales are still growing year over year (+1.8%). Foot traffic has also increased (+2.2%) compared to 2024. Ambulatory Health Care and Wholesalers Gain Some Momentum – After a sluggish spring, Ambulatory Health Care (+3.2%), Wholesale Durables (+1.4%), and Wholesale Non-Durables (+2.0%) made solid month-over-month gains. To access the full Fiserv Small Business Index, visit About the Fiserv Small Business Index ® The Fiserv Small Business Index is published during the first week of every month and differentiated by its direct aggregation of consumer spending activity within the U.S. small business ecosystem. Rather than relying on survey or sentiment data, the Fiserv Small Business Index is derived from point-of-sale transaction data, including card, cash, and check transactions in-store and online across approximately 2 million U.S. small businesses, including hundreds of thousands leveraging the Clover point-of-sale and business management platform. Benchmarked to 2019, the Fiserv Small Business Index provides a numeric value measuring consumer spending, with an accompanying transaction index measuring customer traffic. Through a simple interface, users can access data by region, state, and/or across business types categorized by the North American Industry Classification System (NAICS). Computing a monthly index for 16 sectors and 34 sub-sectors, the Fiserv Small Business Index provides a timely, reliable and consistent measure of small business performance even in industries where large businesses dominate. About Fiserv Fiserv, Inc. (NYSE: FI), a Fortune 500 company, moves more than money. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and Clover ®, the world's smartest point-of-sale system and business management platform. Fiserv is a member of the S&P 500 ® Index, one of TIME Magazine's Most Influential Companies™ and one of Fortune ® World's Most Admired Companies™. Visit and follow on social media for more information and the latest company news.
Forbes
16-07-2025
- Business
- Forbes
Investment Made By U.S. Small Businesses
Education and training are important investments in workers (human capital). However, workers must be paired with physical capital (from shovels to AI computers) to produce the goods and services that consumers want. Small business owners act as 'intermediaries,' bringing capital and labor together in a working partnership. NFIB's June Small Business Economic Trends report found that 50% of small business owners reported making a capital expenditure in the past six months. These included vehicles, equipment, fixtures and furniture, buildings or land, along with improvements to existing buildings or land. Historically, June's level is low, close to the 50-year low of 45% reached after the 2008 recession (Chart 1). The peak of 72% occurred in December 1998, as spending surged in anticipation of the 'Y2K' event, which turned out to be a 'non-event." Actual Capital Outlays. NFIB Small Business Economic Trends. Chart 2 shows the types of expenditures made in June. Thirty-two percent reported purchasing vehicles, ranging from a low of 13% among wholesale businesses to a high of 45% among finance and real estate businesses. Nine percent purchased new equipment, 3% upgraded structures, and 13% acquired new facilities (purchased or leased). Equipment purchases were concentrated in the service and retail industries. Types of Investment by Industry (Bought or Leased). NIFB Small Business Economic Trends. The most frequent spenders were transportation and communication businesses (Chart 3). They also had the highest spending, with 29% reporting outlays of $100,000 or more. Trucks and construction vehicles are expensive! Businesses in the retail, services, and professional services industries were the least active buyers and tended to spend less money when they invested. In general, businesses that 'made stuff' were much more likely to invest and spend more money than service businesses (labor-intensive). Capital Expenditure Amount by Industry. NFIB Small Business Economic Trends. A critical component of gross private domestic investment is the 'change in business inventories.' In simple terms, if General Motors makes a car in the U.S. and sells it, GDP is created as consumption rises. If the car is unsold at the end of the accounting period (year, quarter, or month), then it becomes an inventory investment. When the car is sold in another period, it is a subtraction from GDP because it was already accounted for in GDP through increased inventory investment. Basically, it is an accounting convention, unrelated to real investment spending, but a contributor to volatility in GDP measurement. It is small compared to outlays on plant and equipment and housing. Actual Change in Inventory. NFIB Small Business Economic Trends. Progress is the product of a partnership between capital and labor, the essence of all businesses, big and small. Owners provide the structure and equipment and hire workers to complete the partnership. Good management and qualified workers enhance productivity, the fundamental driver of profits and wages. It's a never-ending process, as the environment is constantly changing. Main Street is where it all starts. Microsoft (et al) didn't just suddenly appear; they were all small businesses on Main Street.
