Small businesses saw a modest rebound in July, with sales rising 1% from June after three months of slowing momentum, according to Fiserv’s Small Business Index, as reported by Zachary Russell for Chain Store Age. On a year-over-year basis, sales were up 3.6% and transactions climbed 3%, signaling steady consumer activity despite persistent economic headwinds. The index’s seasonally adjusted reading ticked up one point to 149.
The improvement wasn’t the result of more people visiting shops. Foot traffic was virtually unchanged, up just 0.1%, but the amount spent per visit increased. Average ticket size rose 0.9% from June and 0.7% from a year earlier, pointing to higher spending on each purchase—likely influenced by inflation.
Spending patterns showed a clear divide between essentials and discretionary goods. Essentials led the way, with sales up 1.5% month-over-month and 6.1% year-over-year. Average tickets for essentials climbed 1.4% over June and 3% compared to last year. Discretionary categories grew more slowly, gaining 0.5% month-over-month and 1.1% year-over-year.
Restaurants continued to face pressure, recording a 0.3% drop in visits for the third consecutive month. Sales fell 0.9% from June—or 1.1% after adjusting for inflation. Still, restaurants remained ahead of last year’s pace, with sales up 18% and foot traffic up 2.2% year-over-year.
Prasanna Dhore, Fiserv’s chief data officer, noted that July’s growth was “largely driven by higher average tickets, likely resulting from continued inflationary pressure,” adding that consumers are prioritizing essentials over discretionary purchases.