Fiserv: Small business sales see boost in March
Small business sales increased in March despite consumers remaining uneasy about the economy at large.
The Fiserv Small Business Index for March 2025 revealed that small business sales (+5.5%) and total transactions (+6.7%) both increased year-over-year. Month-over-month sales (+1.8%) and transactions (+2.3%) also grew.
Adjusting for inflation, sales grew (+3.0%) year-over-year and (+1.5%) month-over-month. The seasonally-adjusted Index rose three points to 150, a notable increase from February.
“U.S. consumers spent locally despite the economic narrative,” said Prasanna Dhore, chief data officer at Fiserv. “March small business sales improved from February with a shift in consumer spending away from retail and into services and non-discretionary spending.”
Small business retail sales (+3.2%) and transactions (+3.6%) grew year-over-year, led by general merchandise (+11.4%), furniture (+6.7%) and building materials and garden supply (+6.1%). Gasoline stations (-3.0%) were the only retail category to see a year-over-year sales decline, a result of lower fuel prices (-4.8%).
On a monthly basis, retail sales were nearly flat (-0.1%) following a strong month of growth in February. Average tickets (-1.9%) were also lower in March as uncertainty may be driving some to be more budget-conscious. The most significant acceleration of sales growth came from general merchandise (+1.9%), building materials/garden supply (+1.6%) and grocery (+1.2%). Sales slowed across furniture, motor vehicle parts, and sporting goods.
Consumer spending at small business restaurants declined (-0.6%) year-over-year despite transactions (or foot traffic) growing (+7.9%). Average ticket sizes decreased (-8.5%) compared to 2024, continuing a trend that has persisted over the past quarter.
On a month-over-month basis, total restaurant sales (+2.7%) and transactions (+1.8%) grew. Average tickets (+1.0%) increased slightly compared to February.
[READ MORE: NRF: 2025 retail sales to grow 2.7% to 3.7% as spending slows]
Sales at service-based businesses grew (+6.2%) year-over-year. The fastest-growing service categories were hospitals (+26.3%), information (+11.7%), professional services (+11.5%), and truck transportation (+11.4%). In contrast to last March, amusement, gambling and recreation (-3.3%), transit and ground passenger transportation (-2.1%), and accommodation (-0.1%) all declined year-over-year.
Compared to February 2025, information (+10.9%), insurance (+7.1%), and rental and leasing (+7.1%) services were the fastest-growing categories. The only category to decline was repair and maintenance services (-0.1%).
Fiserv noted that small business sales grew in 44 states, with the strongest growth in the Midwest and Southeast. The most year-over-year sales growth was seen in Georgia (+15.3%), South Carolina (+13.4%), North Dakota (+13.3%) and North Carolina (+12.4%). The top-performing states month-over-month were Illinois (+5.7%), Ohio (+5.3%) and West Virginia (+5.1%).
Large cities showing the most year-over-year sales growth were Atlanta (+17.3%) and Philadelphia (+6.3%). Month-over-month sales growth was strongest in San Francisco (+4.6%) and Los Angeles (+4.3%).
