Payments and financial services technology provider Fiserv, Inc. published the Fiserv Small Business Index for January 2025. Nationally, the seasonally adjusted Index for January was 147, a one-point increase from December. Sales growth persisting through January was a welcome start to the new year for small businesses, many of which were coming off a strong holiday season.
Businesses in the services sector had a particularly strong month, according to the index, 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.
“Small businesses saw continued growth in January, starting 2025 off on the right foot,” said Prasanna Dhore, chief data officer at Fiserv, in a news release.
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, according to the index.
Retail sales
Consumer spending at small business retail remained strong with sales (+4.1%) and transactions (+5.1%) growing year over year; average ticket sizes (-1.0%) declined slightly compared to January 2024. Year over year, the fastest-growing retail categories were General Merchandise (+11.0%), Grocery (+5.6%) and Building Materials (+4.5%), according to the index.
On a monthly basis, small business retail sales (+0.2%) and transactions (+0.8%) saw modest growth; average ticket sizes declined (-0.6%). The strongest month-over-month gains were seen across Building Materials (+1.9%), Gasoline Stations (+1.6%) and Grocery (+0.7%), according to the index. 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.
Restaurants sales
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, according to the index, reflecting inflation-induced pressures, with consumers shifting to lower cost options.
Similarly, month-over-month restaurant sales (-1.3%) declined while total restaurant transactions (+1.8%) grew. Average ticket sizes (-3.1%) fell compared to December, according to the index.
Services sales
With small business retail spending steady and restaurant sales declining, consumers shifted more dollars in January to service-based businesses, according to the index, which grew sales year over year (+5.5%) and month over month (+0.8%).
On an annual basis, the fastest-growing service categories were Professional Services (+13.4%), Food Manufacturing (+12.5%), Religious, Civic and Professional Organizations (+10.2%), and Truck Transportation (+8.7%), according to the index.
Compared to December 2024, Professional Services (+3.2%), Religious, Civic and Professional Organizations (+2.5%), and Educational Services (+2.2%) saw the most growth, according to the index.
Regional trends
- States showing the most year-over-year sales growth were Wisconsin (+13.9%), Florida (+11.9%), Georgia (+11.5%), Virginia (+10.4%) and Minnesota (+9.0%). The strongest performing states month over month were Maryland (+4.2%), Montana (+3.5%) and Iowa (+3.5%).
- Large cities showing the most year-over-year sales growth were Atlanta (+14.3%) and Miami (+9.8%). On a monthly basis, sales growth was strongest in Boston (+2.5%), Washington DC (+2.0%) and Philadelphia (+1.8%).
