Small businesses in the U.S. saw a prosperous December as shoppers wrapped up their holiday purchases, according to the Fiserv Small Business Index. For the month, the seasonally adjusted index stood at 146, a 3-point increase over November. This figure, which is derived from point-of-sale transaction data—covering card, cash, and check transactions both in-store and online—reflects activity at about 2 million U.S. small businesses.
Prasanna Dhore, Chief Data Officer at Fiserv, stated, “Small business sales continued their growth in December despite shifts in consumer spending patterns.” Notably, consumers steered more of their spending towards service-based businesses, while retail spending remained robust. However, dining out saw a decline, with restaurant ticket sizes continuing to shrink.
The overall sales increase for small businesses was 4.9%, while total transactions grew by 5.5% compared to the same period in 2023. This growth trend mirrored the performance of larger businesses. The National Retail Federation (NRF) reported that holiday sales in November and December surged by 4% to $994.1 billion, exceeding the group’s expectations.
Retail spending within small businesses remained a key highlight. Retail sales rose by 4.9%, and transactions climbed by 5.8% in December. Categories such as general merchandise, clothing, shoes, jewelry, furniture, electronics, and groceries showed the strongest sales.
In contrast, the restaurant sector faced challenges, with sales dropping 3.4% from the previous year despite a 4.1% rise in transactions. Full-service restaurants, including both upscale and family dining establishments, were the weakest performers. In particular, quick service and fast-casual restaurants showed better results. The decline in average ticket size, which dropped by 7.4% compared to 2023, contributed to this disparity.
For more information on the latest trends in small business and consumer spending, check out resources from Fiserv and National Retail Federation.
