Small Business Sales Stabilize in February
U.S. small business sales held steady in February, with the Fiserv Small Business Index remaining at 143. Year-over-year sales saw a modest 1.2% increase, as higher average purchase amounts helped offset declines in foot traffic attributed to weather.
The Fiserv Small Business Index is built from point-of-sale transaction data across approximately 2 million U.S. small businesses, tracking actual consumer spending rather than relying on survey or sentiment data. This methodology provides a more direct and timely measure of the economic activity within this crucial sector. February's stability masked significant divergence among sectors. Harsh weather and seasonal patterns boosted sales for Repair and Maintenance (+1.5% YoY) and Professional Services (+4.2% YoY). Meanwhile, restaurants saw sales decline as foot traffic slowed, indicating a shift in consumer spending priorities. The 2.0% year-over-year increase in average ticket size was critical in offsetting the 0.8% decline in foot traffic. This reflects a broader trend where businesses are navigating persistent inflationary pressures, a challenge cited by 80% of small business owners for 2025. Despite sales holding steady, hiring is becoming a challenge, with plans scaling back due to high costs. In January, 31% of small businesses reported jobs they could not fill, with openings for skilled workers remaining significantly above historical averages. For finance professionals, this granular, real-time data is vital for risk assessment. Lenders and investors analyze these sector-specific trends to make informed credit decisions and to understand the overall health of commercial loan portfolios. From a data analytics perspective, the report highlights a key trend: 42% of small business owners plan to leverage technology, including AI, to boost productivity in 2026. Analysts use such datasets to help businesses optimize operations and strategy in response to shifting economic conditions and consumer behavior.
