KPI – August 2026: The Brief

Key Takeaways, Courtesy of The Fiserv Small Business Sales Index:

Restaurant traffic stayed under pressure: Food Services and Drinking Places sales slipped 0.8% YoY and 0.4% MoM, as average tickets rose 2.8% YoY but transactions fell 3.6%. Limited-Service Restaurants continued to lag, with sales down 3.4% YoY on a large drop in transactions (-5.3%). Full-Service Restaurants held comparatively steady, edging up 0.6% YoY.
Gasoline eased while grocery steadied: Gas Station sales remained elevated (+14.2% YoY) but declined 0.5% MoM as average tickets (+15.4% YoY) remained elevated. Meanwhile, grocery spending appeared to be focused on value, with sales rising 0.6% YoY on higher transactions (+1.3%), even as average tickets fell (-0.7%).
Retail kept its footing on stronger traffic: Total retail sales increased 1.9% YoY, supported by transaction growth of 2.2% YoY even as average tickets declined 0.3%. Consumers leaned into value and lifestyle categories, with Sporting Goods and Hobby Retailers (+5.6%), Clothing and Accessories (+2.1%) and Health and Personal Care Retailers (+3.6%) all performing well YoY, suggesting households remained willing to spend selectively.
The tug-of-war between needs and wants continued: Essentials grew 2% YoY, outpacing Discretionary (+1.3%), though both saw transactions decline. The clearer story was Goods versus Services. Goods sales rose 2% YoY, driven entirely by activity. Transactions increased 2% and average tickets were flat compared to 2025. Services grew 1.4% YoY, with average tickets up 4.4% even as transactions fell 2.9%.

In July, the NFIB Small Business Optimism Index rose to 99.8 in July 2026, achieving its highest level since August 2025 and moving above its 52-year historical average of 98.0. Hiring plans improved substantially and contributed most to the rise in the Index. Real sales expectations and reports of inventory levels as “too low” both fell by two points. The Uncertainty Index rose two points from June to 91, remaining well above its historical average of 68. The rise was driven by an increase in owners reporting uncertainty about whether it is a good time to expand and capital expenditure plans.

“Small business optimism rose again in July, with a significant increase in owners expecting to hire, accompanied by an improvement in plans to make capital expenditures,” says Bill Dunkelberg, chief economist at NFIB. “Although uncertainty is currently elevated, Main Street anticipates that business conditions will continue to improve.”

Important Takeaways, Courtesy of NFIB:

The top reported issue was labor quality or availability. Twenty-seven percent of small business owners cited “labor quality or availability” as their single most important problem in July, up eight points from June and 15 points above the historical average of 12%.
Thirty-six percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up four points from June and the highest reading since June 2025.
Looking ahead, a seasonally adjusted net 20% of owners plan to create new jobs over the next three months, up nine points from June. Hiring plans are at their highest level since October 2022 and are nine points above the historical average.
Both actual and planned price increases dropped notably from June. The net percent of owners raising average selling prices fell seven points from June to a net 31% (seasonally adjusted), after four consecutive months of increases. Looking forward to the next three months, a net 28% (seasonally adjusted) plan to increase prices, down four points from June.
Reports of inflation as the single most important problem fell for the first time this year. Fourteen percent of business owners cited inflation as their single most important business problem, down seven points from June’s highest reading since October 2024.
Twenty-five percent (seasonally adjusted) of small business owners plan to make capital outlays in the next six months, up five points from June and the highest reading since December 2024.
The net percent of owners expecting higher real sales volumes over the next quarter fell two points from June to a net 7% (seasonally adjusted).
The frequency of reports of positive profit trends improved four points from June to a net negative 16% (seasonally adjusted).

Key Performance Indicator Report Overview

Professionals in the automotive, RV and powersports industries remain steadfast in their efforts to evolve their business models and grow their brands in the face of adversity. As such, the monthly Key Performance Indicator Report serves as an objective wellness check on the overall health of our nation, from the state of manufacturing and vehicle sales to current economic conditions and consumer trends. Below are a few key data points explained in further detail throughout the report.

Key Takeaways:

Economic activity in the manufacturing sector expanded for the seventh consecutive month, according to the nation’s supply executives in the latest ISM Manufacturing PMI Report. The Manufacturing PMI registered 55.6% in July, 2.3 percentage points above the June figure and the highest reading since May 2022 (55.9%).
In July, global Light Vehicle (LV) sales “improved marginally” to approximately 90 million units per year—a figure that remains well below last year’s market result. Likewise, year-to-date sales stand at 50 million units, down nearly 4% compared to the first seven months of 2025.
Total new-vehicle sales for July 2026, including retail and non-retail transactions, are projected to reach 1,415,800—a 1.4% year-over-year increase, according to a joint forecast from J.D. Power and GlobalData.
The Manheim Used Vehicle Value Index (MUVVI) fell to 207.4, reflecting a 1.2% decrease in wholesale used-vehicle prices (adjusted for mix, mileage and seasonality) during the first 15 days of August compared to July. The Manheim index is now flat compared to August 2025, declining from the elevated values we saw in the first half of the year.
Powersports Business says dealers across the country reported a slight incline of 9.1% in combined same-store sales compared to the same month last year, according to composite data from more than 1,700 dealerships in the U.S. that utilize CDK Lightspeed DMS. On average, dealerships were up 9.5% in major units and 8.3% in service, but down 6.3% in the parts department.

Image Source: Powersports Business