Three types of Main Street small and medium-sized businesses (SMBs) that were among those most affected by the pandemic have also seen the swiftest recovery over the past year from their pandemic low points.
In terms of their year-over-year Main Street Index score variations as of Q1 2022, restaurants are up 29%, fitness establishments are up 25% and personal services providers are up 17%, according to “The Main Street Index,” a PYMNTS and Melio collaboration.
Get the report: The Main Street Index
The Main Street Index provides a quarterly metric measuring the health of typically small businesses found on main streets in both urban and suburban areas. Measurements are in real terms and are based on the growth in new establishments, real wages and employment.
In addition to the three fastest-growing sectors, two others also saw double-digit year-over-year gains, with building contractors/remodelers growing 15% and service/repair providers gaining 11%.
Despite their growth over the past year, three types of Main Street SMBs still have scores that remain below their pre-pandemic levels. Compared to their Q4 2019 levels, the March 2022 scores of fitness establishments are 3.4% below, retail establishments are 1.8% below and restaurants are 1.3% below.
Building contractors/remodelers have performed best in the last two years, and their score is 16% above its last pre-pandemic reading.
Taking a longer view, the pandemic also amplified pre-existing differences in the growth rates of several key Main Street sectors. Some, such as restaurants and retail, still fall below levels from a decade ago.
Others — professional services and healthcare — have soared above previous benchmarks.
The professional services sector remains the least impacted by the pandemic. In Q1 2022, the sub-Index score for professional services showed growth of 46% over the last 10 years.
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