Small Business Sales Experience Uptick Amid Economic Pressures

Small businesses experienced a slight uptick in sales during July, driven primarily by increased average transaction values amidst persistent economic pressures. Year-over-year sales grew by 3.6%, with transaction numbers rising by 3.0%, indicating sustained consumer spending resilience. Month-over-month, sales increased by 1.0%, reversing a recent downward trend, although foot traffic remained relatively unchanged at 0.1%. The average ticket size also expanded by 0.9% compared to June. According to Prasanna Dhore, Chief Data Officer at Fiserv, the modest monthly growth was largely due to consumers spending more per visit, likely influenced by ongoing inflation. Consumers are increasingly prioritizing essential purchases, with discretionary spending growing more cautiously. Key insights include: - The 1.0% month-over-month sales increase marked a recovery from previous decline, with higher average spending per customer being the main contributor, rather than increased foot traffic. - Sales of essential goods surged both annually (+6.1%) and monthly (+1.5%), with rising costs reflected in higher average ticket sizes (+1.4% monthly, +3.0% annually). Discretionary categories saw slo...