According to SAHM Caapital, small business sales growth in April was driven largely by higher consumer prices rather than increased customer demand, according to new data released by Fiserv. The company’s latest Small Business Index showed that while sales increased modestly year over year, foot traffic and transaction volume continued to decline as consumers adjusted spending habits amid elevated prices.
Fiserv’s seasonally adjusted Small Business Index held steady at 144 in April. Year-over-year sales rose 1.1%, supported primarily by a 2.8% increase in average transaction size, marking the largest annual average ticket increase since 2022. At the same time, transactions declined 1.7% compared to the previous year, indicating consumers are spending more per purchase while visiting businesses less frequently.
According to Prasanna Dhore, consumer spending remained resilient on the surface, but growth continued to rely on price-driven gains rather than stronger demand. The report noted that consumers are increasingly prioritizing value, moderating discretionary purchases, and reducing overall shopping frequency as prices remain elevated.
Restaurant performance remained mixed during the month. Full-service restaurants posted modest gains, while limited-service restaurants saw notable declines in both sales and foot traffic. Grocery spending also weakened year over year, while gas station sales surged due largely to rising fuel prices and higher average ticket sizes.
The report also showed divergent trends across goods and services categories. Services businesses experienced stronger sales growth driven by larger transaction sizes, even as customer traffic declined. Goods sales remained relatively flat, with slight increases in foot traffic offset by lower average ticket values.
Fiserv said the data reflects continued economic pressure on consumers and small businesses alike, highlighting how pricing strategies have helped sustain revenue growth despite softer demand and reduced shopping activity.