Fiserv Small Business Index® January 2025: Insights into Small Business Sales Growth and Consumer Spending Trends
In January 2025, the Fiserv Small Business Index®, published by Fiserv, Inc. (NYSE: FI), revealed encouraging signs for small businesses across the United States. The seasonally adjusted index for January stood at 147, marking a one-point increase from December 2024. This growth signals a positive start to the new year for small businesses, many of which benefited from a robust holiday season.
As a leading global provider of payments and financial services technology, Fiserv leverages real-time transaction data to provide an accurate snapshot of small business performance. Unlike surveys or sentiment-based analyses, the Fiserv Small Business Index aggregates point-of-sale transaction data, including card, cash, and check payments, from approximately 2 million U.S. small businesses. This data-driven approach ensures reliable insights into consumer spending and business trends.
Key Highlights: Small Business Performance in January 2025
Small businesses experienced steady growth in January, with year-over-year sales increasing by 5.1% and total transactions rising by 6.5% compared to January 2024. On a month-over-month basis, sales grew by 0.5%, while transactions increased by 1.3%. These figures reflect continued resilience in the face of economic challenges.
Retail Sector: Steady Growth Amidst Holiday Aftermath
The retail sector maintained strong performance, with year-over-year sales growing by 4.1% and transactions increasing by 5.1%. However, average ticket sizes declined slightly (-1.0%) compared to January 2024. Notably, the fastest-growing retail categories included:
- General Merchandise (+11.0%)
- Grocery (+5.6%)
- Building Materials (+4.5%)
On a monthly basis, small business retail sales saw modest growth (+0.2%), driven primarily by increases in Building Materials (+1.9%), Gasoline Stations (+1.6%), and Grocery (+0.7%). Conversely, sectors like Clothing (-3.4%), Furniture (-1.9%), and Motor Vehicle Parts (-0.8%) experienced slower growth following the holiday rush.
Restaurant Sector: Foot Traffic Up, Sales Down
While foot traffic at small business restaurants grew significantly (+6.5%) year over year, overall sales declined (-1.7%) due to shrinking average ticket sizes (-8.3%). This trend reflects inflationary pressures and consumers opting for more affordable dining options.
Month-over-month data mirrored this pattern, with restaurant sales dropping (-1.3%) despite a 1.8% increase in transactions. Average ticket sizes fell further (-3.1%) compared to December 2024.
Services Sector: A Bright Spot for Growth
The services sector emerged as a standout performer in January 2025. Year-over-year sales grew by 5.5%, while month-over-month sales increased by 0.8%. Consumers appeared to shift their spending toward service-based businesses, particularly in areas such as:
- Professional Services (+13.4%)
- Food Manufacturing (+12.5%)
- Religious, Civic, and Professional Organizations (+10.2%)
- Truck Transportation (+8.7%)
Compared to December 2024, notable gains were seen in Professional Services (+3.2%), Religious, Civic, and Professional Organizations (+2.5%), and Educational Services (+2.2%).
Regional Trends: Growth Across States and Cities
Certain states demonstrated exceptional year-over-year sales growth. Leading the pack were:
- Wisconsin (+13.9%)
- Florida (+11.9%)
- Georgia (+11.5%)
- Virginia (+10.4%)
- Minnesota (+9.0%)
On a monthly basis, Maryland (+4.2%), Montana (+3.5%), and Iowa (+3.5%) showed the strongest gains.
Among large cities, Atlanta (+14.3%) and Miami (+9.8%) led in year-over-year sales growth. Month-over-month, Boston (+2.5%), Washington DC (+2.0%), and Philadelphia (+1.8%) topped the list.
Why the Fiserv Small Business Index Matters
The Fiserv Small Business Index is a vital resource for understanding the health of the U.S. small business ecosystem. By analyzing transaction data from diverse industries, the index provides actionable insights into consumer behavior, regional trends, and sector-specific performance. Benchmarked to 2019, it offers a numeric value representing consumer spending alongside a complementary transaction index measuring customer traffic.
With its comprehensive coverage of 16 sectors and 34 sub-sectors, the index serves as a timely and reliable tool for businesses, policymakers, and investors seeking to navigate the evolving economic landscape.
About Fiserv
Fiserv, Inc. (NYSE: FI) is a Fortune 500 company and a global leader in payments and financial technology solutions. Through innovative platforms like Clover, Fiserv empowers businesses to streamline operations, enhance customer experiences, and drive growth. As a member of the S&P 500® Index and recognized as one of Fortune World’s Most Admired Companies™, Fiserv continues to shape the future of commerce and finance.
To explore the full Fiserv Small Business Index, visit fiserv.com/FiservSmallBusinessIndex.
