Small Business Sales Stabilize in February
The Fiserv Small Business Index for February remained stable at 143, with a 1.2% year-over-year sales increase. The data shows that higher ticket sizes are successfully offsetting declines in foot traffic, indicating that customers who are shopping are spending more per transaction.
The increase in average spending per transaction reflects a broader consumer trend toward intentional, high-quality purchases. Shoppers are adopting a "buy once, buy well" mentality, prioritizing longevity and durable, high-quality furnishings over disposable items. While restaurants and some retailers saw foot traffic decline due to harsh winter weather, service-based businesses experienced growth. Notably, the Repair and Maintenance subsector saw a 1.5% year-over-year sales increase, suggesting homeowners are continuing to invest in their properties. This spending pattern highlights a "K-shaped" dynamic in the economy, where higher-income households have maintained spending momentum, often supported by savings and wealth gains. These households are spending a smaller portion of their budget on essentials, leaving more room for discretionary purchases like home design projects. Looking ahead, consumer confidence improved modestly in February, with a notable increase in plans to purchase big-ticket items over the next six months. Furniture was a leading category in these future spending plans, signaling potential demand for home-related projects. This national trend occurs as Florida's economy is forecast to outperform the rest of the U.S. in 2026. The state was recently ranked the best state to start a business, citing a nearly 16% growth in small businesses between 2017 and 2023 and the highest rate of entrepreneurship in the nation.
