Fiserv Index: Small business sales increased in February

Small businesses saw sales rise monthly and year-over-year in February as consumer spending remained strong.

According to the seasonally adjusted Fiserv Small Business Index, small business sales in February grew +2.6% month-over-month and +6.6% year-over-year. The sales increases boosted the index three points from January to 142.

Retail small businesses delivered strong results in February, with an index of 149, reflecting a +6 point gain over January. Sales activity grew a seasonally adjusted +3.7% over January and +7.2% year-over-year. Sales growth was boosted by gains in foot traffic, with retail small business transaction numbers at a five-year high of 131.

“Consumer spending accelerated through February, delivering a significant boost to small business sales,” said Prasanna Dhore, chief data officer at Fiserv. “Small businesses in the retail sector had a particularly strong month, with a high volume of foot traffic helping drive 3.7% month-over-month and 7.2% year-over-year sales growth. We also saw spending at Food Services and Drinking Places rebound after a lackluster January, with sales up 4.1% month-over-month.”

All sub-sectors within retail advanced, with index results increasing between two and eight points over January. Among retail sub-sectors: 

• Food Services and Drinking Places experienced a strong rebound in February, rising five points over the previous month to 127. Spending was up 4.1% over January and 6.3% compared to last year.
• Food and Beverage Retailers also improved five points to 157 on a 3.4% spending increase from January and a 6.7% increase year-over-year.
• Gasoline Stations and Fuel Dealers increased seven points to 150, with spending up 4.4% over January and 6.3% year-over-year.
• Motor Vehicle and Parts Dealers have an Index Value of 139, with a spending increase of 3.6% from January, and a year-over-year increase of 5.1%.

Despite the small business gains during the month, The Conference Board’s Consumer Confidence Index fell in February to 106.7, down from a revised 110.9 in January, marking the first decline after three consecutive months of increases. 

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.