Small Business Sales Flat in February
The Fiserv Small Business Index for February 2026 held steady at 143, with year-over-year sales up just 1.2%. The data suggests that while poor weather may have reduced foot traffic, businesses compensated with higher prices per transaction. This indicates a stable, if not booming, environment for small businesses.
The February stability follows a weather-induced slowdown in January, when the index dipped 1 point to 143. That month saw a sharp 2.0% year-over-year decline in foot traffic, the most significant drop since mid-2022, as winter storms cooled consumer activity. For service-based businesses, February saw a notable uptick. Professional Services sales grew 4.2% year-over-year, while the Repair and Maintenance subsector, highly relevant for tradespeople, saw a 1.5% year-over-year sales boost as consumers dealt with the impact of harsh weather. The 1.2% year-over-year sales growth in February 2026 marks a slowdown from the 2.1% annual growth seen in February 2025. In the previous year, transaction growth was a much healthier 4.0%, indicating a more challenging environment for customer traffic in early 2026. Looking at the trades, the broader construction industry faces a mixed but cautiously optimistic outlook for 2026. While contractors report more cautious sentiment on many types of work compared to last year, 63% still plan to add workers in 2026. A significant headwind for contractors remains the skilled labor shortage. More than 80% of construction firms report difficulty in finding qualified workers, and 56% cite rising labor costs as a major challenge, which directly impacts job pricing and profitability. One of the strongest growth areas in construction for 2026 is data center projects, driven by the expansion of AI infrastructure. This creates a direct opportunity for electricians with expertise in high-demand power facilities and specialized electrical systems.
