Payments and financial services technology provider Fiserv, Inc. published its Fiserv Small Business Index for April 2025, with the seasonally-adjusted Index at 151, a one point increase from March. As National Small Business Week begins in the U.S., consumers are making notable shifts in purchasing behavior – spending more on the essentials, trimming back discretionary purchases and spending less when they choose to dine out.
“Even as consumer spending shows resiliency, market uncertainties appear to be driving budget-conscious consumers to reprioritize where they spend their money,” said Prasanna Dhore, chief data officer, Fiserv, in a news release. “Small businesses providing the essentials, including healthcare and grocery, saw strong gains in the month; conversely, discretionary spending, including parts of travel and retail saw growth slow.”
On a year-over-year basis, small business sales (+3.2%) and total transactions (+6.9%) continued to show growth, according to the index. Annual sales growth was challenged by very strong results in April 2024, while transactions growth maintained healthy levels relative to the past 12 months. Month-over-month sales (+0.4%) and transactions (+0.3%) also rose.
Inflation contributed 2.4% to April 2025 sales growth compared to 3.4% in April 2024, according to the index, and 2.4% in March 2025.
Services Outperform Goods
Compared to April 2024, sales of Services (+3.6%) continued to outperform Goods (+2.2%), which has been the case for each month of 2025. Top-performing service categories included Professional Services (+5.0%) and Ambulatory Health Care (+4.2%), according to the index. Sales declined most in Accommodation (-5.0%), along with Transit and Transportation (-1.9%).
Compared to March 2025, Ground Transportation (+4.1%), Insurance (+2.7%) and Rental and Leasing (7.1%) services were the fastest-growing categories. Sales in Accommodation (-0.6%) declined after seeing significant growth a month prior (+3.7%), according to the index, pointing to consumers pulling back in discretionary categories.
Consumers Cut Back When Eating Out
Small business restaurant sales grew modestly year-over-year (+1.8%). On a monthly basis, sales (-0.1%) declined and foot traffic (+0.6%) grew compared to March, according to the index.
An increasingly budget-conscious consumer continues to show up most when dining out. Compared to 2024, average ticket sizes are down significantly (-7.8%) despite total transactions being up (+9.6%).
Retail Growth Cools
Compared to 2024, small business retail sales (+2.2%) and transactions (+0.1%) grew, albeit slowly, led by Grocery (+7.0%), Clothing (+5.3%) and Building Materials/Garden Supply (+4.6%). Gasoline Stations (-4.1%) and Health and Personal Care Retailers (-1.9%) declined, according to the index.
On a monthly basis, Retail sales (+0.2%), transactions (+0.1%) and ticket sizes (+0.1%) were nearly flat. The most sales growth came from Gasoline Stations (+1.5%) and Building Materials/Garden Supply (+1.0%); sales slowed most in General Merchandise (-2.6%) and Sporting Goods (-1.5%).
