Xero, the global small business platform, has released an update from its Xero Small Business Insights (XSBI) program, which aggregates and anonymizes data from tens of thousands of Xero small business subscribers in North America.
According to the report, sales continue to be the weakest since May 2020 - marking the longest run of consecutive declines in the history of their quarterly XSBI series.
This sales data is consistent with the latest National Federation of Independent Business (NFIB) Small Business Optimism Index, where a net 11% of all owners reported lower nominal sales in the past three months.
This survey also showed that small business owners remain pessimistic about economic prospects for 2024.
In more positive news, the XSBI data shows improvements in how long small businesses are waiting to be paid by customers, although they are still, on average, paid more than a week late.
“Any improvement in payment times will always be positive - and welcomed - by business owners. However, it is essential that small business owners continue to take steps to receive timelier payments from customers,” said Ben Richmond, US Country Manager at Xero. “Being paid more than a week late is still much too long and makes cash flow management challenging. As small business owners look to identify growth opportunities during slow periods, encouraging timely payments to maintain cash flow is important.”
For access to the latest Xero Small Business Insights data, visit the website.