Small Business Sales Boom, Eating Out Slows Down

December was a month to remember for small businesses in the U. S. , with sales picking up speed as holiday shoppers rushed to finish their gift lists. The Fiserv Small Business Index, which tracks transactions from about 2 million small businesses, climbed to 146 in December, a 3-point increase from November. This rosy report reflects data from card, cash, and check transactions both in-store and online. Prasanna Dhore, the Chief Data Officer at Fiserv, noted that consumers spent more on services and retail. However, dining out took a dip, with average restaurant ticket sizes shrinking by 7. 4% compared to the previous year. This shift in spending patterns is evident in the decrease in sales for the restaurant industry, which saw a 3. 4% drop in December compared to the same time last year. Despite this, transactions in restaurants still grew by 4. 1%. Full-service restaurants, such as upscale and family dining spots, felt the heat more than quick-service or fast-casual dining outlets. Retail spending, however, painted a brighter picture. Overall, small business sales rose by 4. 9%, and total transactions grew by 5. 5% from December the year before. This growth mirrored trends seen in larger businesses, as reported by the National Retail Federation. They noted a 4% increase in holiday sales to $994. 1 billion, surpassing their own expectations. Key retail categories that shined included general merchandise, clothing, shoes, and jewelry retailers, along with furniture, electronics, appliances, and grocery stores. These sectors saw sales rise by 4. 9% and transactions up by 5. 8% in December.