3.2% Growth Shows Main Street Still Has Bright Spots

§ 01 Executive Snapshot

• What: Main Street growth slows to less than 1%, but planned and recurring services show growth.
• Who: PYMNTS Intelligence, small businesses, banks, payments companies, FinTechs.
• Why it matters: The divide in growth among Main Street businesses highlights opportunities for financial services tailored to varying business needs.

§ 02 Key Developments

• Fitness and recreational sports clubs grew 3.2% in the 12 months through September, marking the strongest gain of any Main Street segment.
• Building contractors and remodelers saw a growth of 2.2%, indicating ongoing consumer investment in home projects.
• Healthcare providers experienced a 2% growth, showing demand for essential services.

§ 03 Strategic Context

• Main Street businesses are traditionally viewed as a homogenous market, but current data suggests a diverse landscape with varying growth trajectories.
• The trend of consumers prioritizing planned services over discretionary spending reflects broader economic pressures and changing consumer behavior.

§ 04 Strategic Implications

• Financial institutions and payments providers may find new opportunities in service categories that require tools for managing recurring payments and customer commitments.
• The shift in consumer spending patterns could lead to long-term operational changes for small businesses as they adapt to focus on services viewed as essential.

§ 05 Risks & Constraints

• The overall contraction in Main Street employment and specific declines in sectors like restaurants and retail pose risks for economic stability.
• Continued economic pressures could further impact discretionary spending and the ability of small businesses to thrive.

§ 06 Watchlist / Forward Signals

• Monitoring future employment trends on Main Street will be crucial to understanding the economic landscape.
• Observing how small businesses adapt their service offerings and payment structures will signal their resilience and ability to capture consumer spending in essential categories.