Small business sales rose in July 2025, with the Fiserv Small Business Index climbing one point to 149, according to Fiserv’s latest report. Year-over-year sales were up 3.6% and transactions increased 3%, signaling continued consumer resilience. On a month-over-month basis, sales gained 1%, reversing a three-month slump, though much of the growth came from higher average ticket sizes (+0.9% MoM; +0.7% YoY) rather than increased customer traffic.
Spending patterns continued to shift, with essentials outpacing discretionary purchases. Essentials sales rose +1.5% MoM and +6.1% YoY, while discretionary spending grew more modestly at +0.5% MoM and +1.1% YoY. Rising average ticket prices in essentials (+3% YoY) suggest that inflation remains a factor in consumer spending.
Restaurants reflected consumer caution, as visits fell for the third consecutive month (-0.3% MoM) and sales declined -0.9% MoM; adjusted for inflation, the drop was -1.1%. Still, restaurant sales were up 1.8% YoY, with foot traffic improving 2.2% compared to 2024. This slowdown in dining spend highlights how households are tightening discretionary budgets while maintaining essential purchases.
Other sectors saw momentum in July, including Ambulatory Health Care (+3.2% MoM), Wholesale Durables (+1.4% MoM), and Wholesale Non-Durables (+2.0% MoM). According to Prasanna Dhore, Chief Data Officer at Fiserv, the modest growth “was largely driven by higher average tickets, likely resulting from continued inflationary pressure,” as consumers focus spending on essentials.
The Fiserv Small Business Index, which tracks point-of-sale transaction data from around 2 million U.S. small businesses, provides a timely measure of small business performance across 16 sectors and 34 sub-sectors. The July report underscores the resilience of consumer demand, even as spending shifts toward necessities and discretionary categories show signs of strain.