Small Business Sales Growth Inches Higher in May Despite Lingering Uncertainty

Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, has published the Fiserv Small Business Index for May 2025, with the seasonally-adjusted Index remaining flat at 151. Despite shifting spending patterns as consumers navigate near-term economic uncertainty, small businesses maintained solid year-over-year sales growth of (+3.3%) and total transactions rose (+3.8%).

"Small businesses continue to show resilience, with May marking another month of year-over-year growth," said Prasanna Dhore, Chief Data Officer, Fiserv. "The continued shift toward essential spending is now a defining trend—growing at double the rate of discretionary purchases as consumers are more intentional with their spending.”

Month-over-month sales (+0.2%) also grew while declining transactions (-2.7%) reflected lower consumer foot traffic. This is the first decline of this magnitude since February 2023, when transactions fell (-2.5%) compared to the month prior. The May average ticket size increased by (+2.9%) compared to April, reflecting a shifting mix of consumer spend, changing demand patterns, and potentially higher pricing for some goods and/or services. For contrast, in the 12 months prior to May, average ticket sizes declined at a modest average rate of (-0.3%) month-over-month.

Service-Based Small Businesses Drive Growth

Compared to May 2024, sales of Services (+3.9%) outperformed Goods (+1.9%), a continuing trend for 2025. Growth drivers on a month-over-month basis included the Transportation and Warehousing sectors. On an annualized basis, Manufacturing and Professional Services showed the most momentum.

Compared to April 2025, Services (+0.4%) showed modest growth while Goods (-0.3%) declined month-over-month, highlighting the continued consumer preference for experiences and essential services over material purchases.

Despite Declining Foot Traffic, Small Business Restaurant Sales Hold Steady

Small business restaurant sales grew modestly year-over-year (+1.8%). On a monthly basis, sales (+0.6%) grew while foot traffic (-5.6%) declined compared to April, with full-service restaurants experiencing the most significant drop.

Consumers Continue to Be Selective in Retail Purchases

Compared to 2024, small business retail sales (+0.9%) grew modestly while transactions (+2.9%) remained positive.

The average ticket size declined nearly (2.0%) year-over-year, suggesting consumers are shopping more frequently but spending less per visit. This trend is likely driven by promotional shopping and deal-seeking as households continue to navigate inflationary pressures. Growth was led by Food and Beverage Retailers (+3.9%) and Clothing Retailers (+5.2%). Gasoline Stations (-5.4%) declined year over year due to significantly lower fuel prices while Health and Personal Care Retailers (-1.7%) also fell.