Small business sales rose in April, even as consumers brace tighter budgets, pulling back on non-essential purchases, and spending less while dining out.
Fiserv, Inc. (NYSE: FI), a global powerhouse in payments and financial technology, has released its April 2025 Small Business Index. According to the Fiserv Small Business Index report, sales soared by 3.2% year-over-year, with transaction volumes jumping 6.9%, signaling robust consumer activity despite economic headwinds. Even on a month-to-month basis, sales edged up by 0.4% and transactions ticked up by 0.3%, demonstrating steady momentum. The seasonally adjusted index climbed to 151, up one point from March, another sign of sustained strength.
Key Takeaways
- Small business sales rose 3.2% year-over-year in April, with transaction volumes up 6.9%. Every month, growth was more modest – sales were up 0.4%, and transactions increased by 0.3%. The index reading of 151 reflects stable but cautious consumer activity.
- Spending patterns show a shift toward essential categories like groceries, healthcare, insurance, and ground transportation. At the same time, areas like accommodation, restaurants, and certain retail segments are seeing either slower growth or outright declines.
- The service sector led growth again, up 3.6% year-over-year compared to a 2.2% rise for goods. Professional services and health care were strong performers, while travel-related services such as accommodation and transportation saw declines due to tighter consumer budgets.
- Restaurants saw a 9.6% rise in foot traffic from last year, but average spending per visit fell 7.8%, leading to flat overall sales. Retail posted a 2.2% annual gain, but nearly all of it came from essentials like groceries and clothing, while general merchandise and sporting goods declined.
Consumers Shift Toward Essentials as Small Business Sales Show Modest Growth in April
Small business sales in April crept up from March, even as consumers kept a tighter grip on their wallets. According to the latest Fiserv Small Business Index, the seasonally adjusted reading for April hit 151, a one-point bump from March. But that modest uptick masks mixed behavior beneath the surface – while overall spending remains in growth mode, shoppers are increasingly funneling dollars toward essentials and dialing back on discretionary splurges.
On the year-over-year front, small business sales climbed 3.2%, with total transactions rising 6.9%. Looking month-to-month, sales edged up 0.4% and transactions were up 0.3%. Those figures were supported by an inflation tailwind of 2.4% in April 2025 – steady with March but notably cooler than the 3.4% inflation contribution seen in April 2024.
Services have outpaced goods for every month of 2025 so far. Compared to April a year ago, service-sector sales grew 3.6% versus 2.2% for goods. Professional Services led the charge at +5.0%, followed by Ambulatory Health Care at +4.2%. On the flip side, high-flying categories like Accommodation fell 5.0%, and Transit and Transportation dipped 1.9% as budget-conscious consumers pared back on travel-adjacent spending.
Even within services, April’s month-over-month winners were in the essentials. Ground Transportation bookings jumped 4.1%, Insurance services were up 2.7%, and Rental and Leasing climbed a robust 7.1%. But accommodation flipped from a 3.7% gain in March to a 0.6% decline in April – a clear sign that tastes are growing more selective.
Restaurants tell a similar story. They saw a modest 1.8% gain in year-over-year sales, but on a month-to-month basis, revenues were flat to slightly down (-0.1%) even as foot traffic ticked up 0.6%. Diners are still showing up – transactions were 9.6% higher than a year ago – but average checks are shrinking fast, down 7.8%, as diners hunt deals and watch their budgets.
Over in retail, growth is cooling. April’s small business retail sales were up just 2.2% year-over-year, with transactions essentially flat at +0.1%. Grocery stores (+7.0%), Clothing retailers (+5.3%), and Building Materials/Garden Supply (+4.6%) held the front lines. Meanwhile, Gasoline Stations saw a 4.1% drop, and Health & Personal Care outlets fell 1.9%. Month over month, retail was nearly parked – sales +0.2%, transactions +0.1%, ticket sizes +0.1% – with Gas Stations (+1.5%) and Building Materials (+1.0%) inching ahead even as General Merchandise (-2.6%) and Sporting Goods (-1.5%) slid.
As National Small Business Week kicks off, Fiserv’s data shows a clear pattern that consumers are shoring up essentials – healthcare, groceries, insurance – while reining in travel, big-ticket retail, and restaurant spending. Prasanna Dhore, chief data officer at Fiserv, noted that while consumer spending remains resilient overall, economic uncertainty is prompting more budget-conscious choices. Shoppers are prioritizing essentials like healthcare and groceries, where small businesses saw solid gains. Meanwhile, more discretionary categories – especially in travel and parts of retail – are seeing growth start to taper off.
For small business owners, these nuances matter. April’s numbers show that while the overall pie is growing, where consumers slice it is changing. Essentials and service-based offerings remain robust, but enticing cautious consumers back into discretionary spending will require creativity, whether through promotions, loyalty perks, or streamlined experiences. As we head into May, keeping a close eye on next month’s index could reveal whether this cautious tone holds or if consumers loosen up again.
About The Fiserv Small Business Index®
The Fiserv Small Business Index® is published during the first week of each month, incorporating all point-of-sale transaction data for the full previous month and refreshed on the 2nd with updated figures. Rather than relying on survey or sentiment data, the Index aggregates real card, cash, and check transactions captured through Fiserv’s payment processing platforms across approximately two million U.S. small businesses, providing an up-to-date view of both consumer spending and customer traffic.
Benchmarked to January 2019, the Index produces two metrics – a sales index and a transaction index measuring foot traffic – and computes monthly values for 16 broad sectors and 34 sub-sectors as defined by NAICS codes. Users can explore data via a simple web interface, filtering by national, state, metro, or industry level, covering all 50 states to deliver consistent, timely insights into small business performance – even in industries dominated by larger players – and to support risk assessment, benchmarking, and strategic planning across government, finance, and media.
To explore the full Fiserv Small Business Index and subscribe to their monthly updates.
About Fiserv
Fiserv, Inc. is a financial technology company based in Milwaukee, Wisconsin, and is part of the S&P 500 index (NYSE: FI). In fiscal year 2024, the company reported $19.12 billion in adjusted revenue, a 7% increase from the previous year. It has about 38,000 employees and supports transactions in over 100 countries.
Fiserv operates through two main business units: Merchant Solutions and Financial Solutions. The Merchant segment offers services like payment processing, fraud prevention, and point-of-sale systems. The Financial segment provides tools for banking, account management, and card services. The company has grown through several acquisitions, including the $22 billion merger with First Data in 2019, the 2022 purchase of Finxact, and more recent deals with Payfare in March 2025 and Pinch Payments in April 2025. Fiserv has been recognized by Fortune in both its Most Innovative Companies and World’s Most Admired Companies lists.
Conclusion
April’s data highlights a key shift in consumer behavior; overall spending is still rising, but it’s increasingly concentrated in essential categories. Small business sales continued to grow, helped by gains in healthcare, groceries, and insurance-related services, while more discretionary segments like travel, dining, and general retail saw slower momentum or slight declines.
For small business owners, this trend suggests that understanding where demand is holding firm – and where it’s pulling back – will be critical in the months ahead. With consumers tightening budgets, success may depend less on overall demand and more on aligning products, pricing, and experiences with changing priorities.
