Fiserv: Small business sales inch up in July amid higher average tickets
Essentials continued to outpace discretionary sales in July.
Small business sales in July grew 1.0% compared to June, reversing a three-month trend of softening consumer spend, according to Fiserv’s Small Business Index for July. Year-over-year sales rose 3.6% and transactions rose 3% signaling the continued resilience of consumer spending. Average year-over-year ticket sizes increased 0.7% compared to 2024.
Average tickets in July rose 0.9% compared to June, while foot traffic remained relatively flat at 0.1%. The seasonally-adjusted Small Business Index rose one point to 149 for July.
Sales continued to grow significantly across essentials, rising 1.5% month over month and 6.1% year over year. Discretionary sales grew, but at a slower pace month-over-month, rising 0.5%. Year-over-year discretionary sales grew 1.1% year over year. This shift comes with higher costs for consumers as average tickets for essentials rose 1.4% month over month and 3% year over year.
With transaction growth nearly flat, consumers weren’t visiting small businesses more in July, they were just spending more on purchases when they did, according to Fisery. Retail sales growth in July 2025 compared to June 2025 was directly attributable to an increase in average ticket size.
“July brought modest monthly sales growth for small businesses, but those gains were largely driven by higher average tickets, likely resulting from continued inflationary pressure,” said Prasanna Dhore, chief data officer at Fiserv. “Economic pressures continue shifting spending patterns as well. Consumers are spending more on essentials, while discretionary is growing at a much slower pace.”
[READ MORE: Consumer confidence inched up in July]
Restaurant visits dipped for the third straight month, inching down 0.3% in July, dragging sales down 0.9%) compared to June. When adjusting for inflation, sales declined 1.1% compared to June.
As a bellwether for household budget flexibility, Fiserv says declining restaurant sales in July signal consumers continuing to tighten up. Despite the slowdown compared to June, restaurant sales are still growing year over year, up 18%. Foot traffic at restaurants also increased, rising 2.2% in July compared to 2024.
