Fiserv: Small business sales 'resilient' in February
While spending was nearly flat compared to January, small business sales in February increased slightly compared to last year.
The Fiserv Small Business Index for February 2025 revealed that on a year-over-year basis, small business sales (+2.1%) and total transactions (+4.0%) showed growth. Month-over-month sales (+0.1%) and transactions (+1.6%) also grew. The seasonally-adjusted Index held steady at 147, unchanged from January.
Year-to-date, combined sales growth for January and February is 3.5%, which is about 1.5 percentage points less than sales growth from the same two-month period in 2024. Fiserv says the slowing growth is the result of lower average ticket size, while transaction growth remains steady.
“Consumer spending continued to show resiliency in February, resulting in a second consecutive month of small business sales growth to start 2025,” said Prasanna Dhore, chief data officer at Fiserv. “Notably, restaurants, furniture, auto parts, clothing and healthcare all saw growth during the month.”
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Consumer spending at small business retail in February remained strong with sales (+1.6%) and transactions (+1.2%) growing year-over-year. Average ticket sizes (+0.4%) also grew, marking the first month since January 2023 that retail tickets have shown a year-over-year increase. Year-over-year retail sales growth was led by general merchandise (+7.3%), clothing (+3.7%) and sporting goods/miscellaneous retailers (+3.6%).
On a monthly basis, small business retail sales (+0.9%) grew and transaction growth was unchanged. Average ticket sizes also increased (+0.8%). The most noticeable increase in sales growth came from motor vehicle and parts dealers (+3.1%) and furniture, home furnishings and electronics (+5.0%).
Consumer spending at small business restaurants declined (-2.4%) year-over-year despite transactions (or foot traffic) growing (+5.9%). Fiserv says these annualized sales declines despite foot traffic growing reflect the ongoing trend of consumers trading down for lower-cost options when dining out.
On a month-over-month basis, restaurants experienced a welcomed bounce, growing both total sales (+2.3%) and transactions (+3.9%). Similar to the annual trend, average ticket sizes declined (-1.6%) month-over-month.
As consumers shifted more of their dollars to restaurants and retailers in February, service-oriented spending showed signs of slowing, growing just +2.3% year-over-year and declining (-0.2%) month-over-month.
On an annual basis, the fastest-growing service categories were professional services (+8.7%), religious, civic and professional organizations (+7.0%), and truck transportation (+7.0%). Sectors seeing the largest sales decline were equipment manufacturing (-9.3%), rental and leasing services (-5.9%), and transit and ground passenger transportation (-5.2%).
Compared to January 2025, hospitals (+1.8%), personal and laundry services (+1.6%), ambulatory health care services (+1.5%) and educational services (+0.7%), saw the most growth. Sales declined most in information services (-2.6%) and administrative services (-2.3%).
States showing the most year-over-year sales growth were North Dakota (+11.8%), Georgia (+10.6%), South Carolina (+8.6%), Minnesota (+7.0%) and Virginia (+6.2%). The strongest-performing states month over month were North Dakota (+8.8%), Louisiana (+5.7%), Texas (+4.3%), Indiana (+4.0%) and Alabama (+3.6%).
Large cities showing the most year-over-year sales growth were Atlanta (+14.4%) and Miami (+5.3%). Conversely, the New York metro area saw sales decline (-5.7%) year-over-year. On a monthly basis, sales growth was strongest in Dallas (+4.6%), Atlanta (+3.2%) and Philadelphia (+1.2%).
