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The seasonally adjusted Fiserv Small Business Index for January was 147, a one-point increase from December. Sales growth nationwide persisting through January was a welcome start to the new year for small businesses, many of which were coming off a strong holiday season, according to Fiserv Inc.
“Small businesses saw continued growth in January, starting 2025 off on the right foot,” says Prasanna Dhore, chief data officer at Fiserv.
Key takeaways:
- Businesses in the services sector had a particularly strong month, while retailers and wholesalers also saw year-over-year growth, albeit at a slower pace. Conversely, restaurants saw increased foot traffic, but sales declined as consumers continued shifting to more wallet-friendly options.
- On a year-over-year basis, small business sales (+5.1%) and total transactions (+6.5%) showed healthy growth compared to January 2024. Month-over-month sales (+0.5%) and transactions (+1.3%) also grew.
- Consumer spending at small business retail remained strong with sales (+4.1%) and transactions (+5.1%). Year over year, the fastest-growing retail categories were general merchandise (+11.0%), grocery (+5.6%) and building materials (+4.5%).
- After a strong holiday season, parts of retail, including clothing (-3.4%), furniture (-1.9%), motor vehicle parts (-0.8%) and general merchandise (-0.1%) saw their growth slow in January.
- Consumer spending at small business restaurants declined (-1.7%) year over year despite transactions (or foot traffic) growing (+6.5%). Negative growth was the result of lower average ticket sizes (-8.3%) compared to 2024, reflecting inflation-induced pressures, with consumers shifting to lower cost options.