According to the Fiserv Small Business Index, small businesses had a merry December, as shoppers wrapped up their holiday shopping, the Associated Press reports.
In the U.S., the seasonally adjusted index for December was 146, up three points from November. The figure is derived from point-of-sale transaction data, including card, cash, and check transactions in store and online across about 2 million U.S. small businesses.
Fiserv, a payment and financial services technology company, found that small business sales rose 4.9%, and total transactions grew 5.5% from December the year prior.
That echoed trends at larger businesses. The National Retail Federation, the nation’s largest retail trade group, said holiday sales in November and December rose 4% to $994.1 billion compared with the previous year. For the holiday period in 2023, sales increased 3.9% compared with the previous two-month period. The holiday sales growth was above the group’s expectations for a 2.5% to 3.5% increase for the period.
Retail spending at small businesses remained a high point. Retail sales rose 4.9%, and transactions rose 5.8% in December. The strongest selling categories were general merchandise, clothing, shoes and jewelry retailers, furniture, electronics, appliances, and grocery.
Restaurants, however, were weaker. Sales fell 3.4% from December a year ago, even though transactions rose 4.1%. Full-service restaurants, including upscale and family dining locations, were the weakest performers, while quick service and fast casual restaurants performed better. The disparity in sales and transactions was the result of a significant reduction in average ticket size, down 7.4%, compared to 2023.
