Small Business Sales Growth Inches Higher Despite Lingering Uncertainty: Fiserv

Despite shifting spending patterns as consumers navigate near-term economic uncertainty, small businesses maintained solid year-over-year sales growth of (+3.3%) and total transactions rose (+3.8%), according to Fiserv’s Fiserv Small Business Index.

"Small businesses continue to show resilience, with May marking another month of year-over-year growth," says Prasanna Dhore, chief data officer, Fiserv. "The continued shift toward essential spending is now a defining trend—growing at double the rate of discretionary purchases as consumers are more intentional with their spending.”

Key takeaways:

·        Month-over-month sales (+0.2%) also grew while declining transactions (-2.7%) reflected lower consumer foot traffic. This is the first decline of this magnitude since February 2023, when transactions fell (-2.5%) compared to the month prior. The May average ticket size increased by (+2.9%) compared to April, reflecting a shifting mix of consumer spend, changing demand patterns, and potentially higher pricing for some goods and/or services. For contrast, in the 12 months prior to May, average ticket sizes declined at a modest average rate of (-0.3%) month-over-month.

·        Compared to May 2024, sales of services (+3.9%) outperformed goods (+1.9%), a continuing trend for 2025. Growth drivers on a month-over-month basis included the transportation and warehousing sectors. On an annualized basis, manufacturing and professional services showed the most momentum.

·        Compared to April 2025, services (+0.4%) showed modest growth while goods (-0.3%) declined month-over-month, highlighting the continued consumer preference for experiences and essential services over material purchases.

·        Small business restaurant sales grew modestly year-over-year (+1.8%). On a monthly basis, sales (+0.6%) grew while foot traffic (-5.6%) declined compared to April, with full-service restaurants experiencing the most significant drop.

·        Compared to 2024, small business retail sales (+0.9%) grew modestly while transactions (+2.9%) remained positive.

·        Compared to April, small business sales grew in 30 of 50 states, indicating broad, but not universal, growth. The most aggressive month-over-month sales growth was concentrated among smaller states, led by New Mexico (+5.9%), Maryland (+3.2%), and Rhode Island (+3.1%). Year-over-year sales growth was strongest in Washington (+13.3%), South Carolina (+11.3%), and Maryland (+10.1%).