U.S. small business sales increased in March, according to the latest Fiserv Small Business Index, with consumer demand driving the seasonally adjusted index up three points to 150.
Sales rose 5.5% year over year and 1.8% from February, with notable increases in services and restaurant traffic despite an overall decline in restaurant spending.
“U.S. consumers spent locally despite the economic narrative,” said Prasanna Dhore, chief data officer at Fiserv. “March small business sales improved from February with a shift in consumer spending away from retail and into services and non-discretionary spending.”
Adjusted for inflation, sales increased 3.0% compared to March 2024, and 1.5% from the previous month.
Services Outpace Other Sectors
Service-based businesses posted 6.2% year-over-year growth, led by hospitals (+26.3%), information services (+11.7%), professional services (+11.5%), and truck transportation (+11.4%). Some categories declined, including amusement and recreation (-3.3%) and passenger transportation (-2.1%).
Month-over-month, the strongest service growth came from information (+10.9%), insurance (+7.1%) and rental and leasing services (+7.1%).
Restaurant Traffic Up, Spending Down
While small business restaurant transactions rose 7.9% year over year, spending dipped 0.6% as average ticket sizes fell 8.5%. Month-over-month, restaurant sales rose 2.7%, with average tickets up 1.0%.
Retail Growth Slows
Retail sales rose 3.2% year over year, led by general merchandise (+11.4%) and furniture (+6.7%). Gasoline stations were the only segment to decline (-3.0%), driven by lower fuel prices. Retail sales were nearly flat month over month (-0.1%), and average ticket size fell 1.9%.
Regional Highlights
Sales rose in 44 states, with the strongest year-over-year growth in Georgia (+15.3%), South Carolina (+13.4%), and North Dakota (+13.3%). Illinois (+5.7%) and Ohio (+5.3%) led month-over-month gains. Among cities, Atlanta saw 17.3% annual growth, while San Francisco posted 4.6% growth from February.
The Fiserv Small Business Index, based on point-of-sale transactions from about 2 million U.S. small businesses, is published monthly.
