Small Business Momentum Continues: Fiserv Index Signals Positive Trends in March 2025

The latest Fiserv Small Business Index reveals a strengthening landscape for U.S. small businesses in March 2025. The seasonally adjusted Index climbed to 150, a three-point increase from February, indicating an accelerating pace of growth. This positive trajectory is underpinned by robust consumer spending, particularly within the services sector, and a notable rise in foot traffic at restaurants, even as overall restaurant spending experienced a slight dip.

Key Performance Indicators – March 2025

Overall Sales Growth: small business sales increased by 5.5% compared to March 2024 and 1.8% compared to february 2025.
Transaction Volume: Total transactions rose by 6.7% year-over-year and 2.3% month-over-month.
Inflation-Adjusted Growth: Accounting for inflation, sales grew 3.0% annually and 1.5% monthly, demonstrating genuine economic expansion.

hospitals: +26.3% – Reflecting ongoing healthcare needs and potentially increased preventative care.
Information: +11.7% – Driven by demand for software, data analytics, and IT support.
professional Services: +11.5% – Including legal, accounting, and consulting services, indicating business investment.
* Truck Transportation: +11.4% – Supporting supply chains and e-commerce fulfillment.

Interestingly, some leisure and hospitality segments experienced declines compared to the previous year. Amusement, gambling, and recreation saw a decrease of 3.3%, while transit and ground passenger transportation fell by 2.1%.accommodation remained relatively flat, down 0.1%. This suggests a potential recalibration of consumer spending habits post-pandemic, with a greater focus on essential and professional services.

restaurant Resilience: Foot Traffic Up, Ticket Sizes Down

The restaurant industry presents a nuanced picture. While consumer spending at small business restaurants decreased by 0.6% year-over-year, foot traffic increased by a substantial 7.9%. This apparent contradiction is explained by a continuing trend of smaller average ticket sizes, down 8.5% compared to March 2024.This dynamic suggests consumers are dining out more frequently but are becoming more price-conscious, opting for less expensive menu items or taking advantage of promotions. It’s a pattern similar to what’s been observed in the broader retail sector, where consumers are prioritizing value and seeking discounts. For example, the National Restaurant Association reported in April 2025 that 68% of adults say cost is a major factor when choosing a restaurant.

These trends collectively paint a picture of a small business sector demonstrating adaptability and resilience in the face of evolving economic conditions. The shift towards services and the continued, albeit modified, engagement with the restaurant industry signal a dynamic landscape ripe with possibility.

Small Business Economic Snapshot: Navigating Shifting Consumer Spending

Recent data reveals a nuanced picture of the small business landscape, with continued growth tempered by evolving consumer behavior. While overall spending remains positive, a subtle shift in priorities is becoming apparent, impacting different sectors and regions in distinct ways.This analysis delves into the latest trends, providing insights into the current state of the U.S. small business economy.

Restaurant Sector Shows Steady, Moderate Gains

The restaurant industry demonstrated consistent, albeit moderate, expansion in the first quarter.Total restaurant sales experienced a 2.7% increase month-over-month, accompanied by a 1.8% rise in transaction volume. The average transaction value saw a slight uptick of 1.0% compared to February, suggesting consumers are still willing to spend on dining experiences, but are potentially becoming more mindful of individual order sizes. This aligns with broader economic trends indicating a cautious optimism among consumers. According to the National Restaurant Association, the industry is projected to generate $997 billion in sales in 2024, a testament to its resilience despite ongoing economic pressures.

Retail Landscape: Growth Decelerates Amidst Consumer Realignment

Small business retail sales increased by 3.2% year-over-year, with a corresponding 3.6% growth in transactions. Key drivers of this growth included General Merchandise (up 11.4%), Furniture (up 6.7%), and Building Materials & Garden Supply (up 6.1%). Interestingly, the only retail category to experience a year-over-year sales decline was Gasoline Stations (-3.0%), directly correlated with a 4.8% decrease in fuel prices.

However, monthly retail sales growth stalled, remaining nearly flat at -0.1% following a stronger February. A decrease in average ticket values (-1.9%) suggests consumers are increasingly focused on value and potentially delaying larger purchases. The strongest growth acceleration was observed in General Merchandise (+1.9%), Building Materials/Garden Supply (+1.6%), and Grocery (+1.2%), indicating a focus on essential and home-related spending.Conversely, sales slowed in sectors like Furniture, Motor Vehicle Parts, and Sporting Goods, potentially reflecting a shift away from discretionary purchases. This mirrors recent reports from the U.S. Census Bureau showing a slight dip in consumer confidence in March.

Geographic Performance: A Tale of Two Regions

Small business sales demonstrated growth across 44 states, with the Midwest and Southeast leading the charge.States experiencing the most significant year-over-year sales increases were Georgia (+15.3%), South Carolina (+13.4%), North Dakota (+13.3%),and North Carolina (+12.4%). On a month-over-month basis, Illinois (+5.7%), Ohio (+5.3%), and West Virginia (+5.1%) exhibited the strongest performance.

Examining urban centers, Atlanta (+17.3%) and Philadelphia (+6.3%) led in year-over-year sales growth. Month-over-month gains were most pronounced in San Francisco (+4.6%) and Los Angeles (+4.3%), suggesting a rebound in these previously challenged metropolitan areas. These regional variations highlight the importance of localized economic factors and consumer preferences.

Understanding the Fiserv Small Business Index

The Fiserv Small Business Index offers a unique and timely perspective on small business performance. Unlike indices relying on surveys, this index is built upon actual point-of-sale transaction data – encompassing card, cash, and check payments – from approximately 2 million U.S. small businesses. This includes a substantial number utilizing the Clover platform.

The Index, benchmarked to 2019, provides a numeric value representing consumer spending, alongside a transaction index measuring customer traffic. Data is accessible through a user-friendly interface, allowing analysis by region, state, and industry classification (using the North American industry Classification System – NAICS). By calculating monthly indices for 16 sectors and 34 sub-sectors, the Fiserv Small Business index delivers a consistent and reliable measure of

The Evolving Landscape of Financial Technology: How Fiserv Drives Innovation

The financial technology (FinTech) sector is undergoing a period of rapid change, driven by evolving consumer expectations and the need for businesses to operate with greater agility and efficiency. At the heart of this evolution are companies like Fiserv, a global leader in payments and financial technology. Fiserv doesn’t simply provide tools; it delivers a extensive ecosystem designed to connect financial institutions, businesses, and consumers in a seamless and secure manner.

Beyond Transactions: A Focus on Financial Wellness

Traditionally,FinTech has been largely associated with streamlining transactions. While this remains a core function, the industry is increasingly focused on broader financial wellness. According to a recent report by Deloitte, 68% of consumers beleive financial institutions should be doing more to help them improve their financial lives. Fiserv addresses this shift by offering solutions that extend beyond basic processing, encompassing account management, risk management, and customer relationship management. This holistic approach empowers clients to build stronger,more valuable relationships with their customers.

Powering Businesses of All Sizes

Fiserv’s impact isn’t limited to large banks and credit unions. The company provides a scalable suite of services tailored to the unique needs of businesses ranging from multinational corporations to small, local retailers. Consider the challenges faced by a growing e-commerce business: they need secure payment processing, fraud prevention, and efficient reconciliation of funds. Fiserv provides integrated solutions that handle these complexities, allowing business owners to concentrate on core operations and growth. Similarly, for a local bakery accepting mobile payments, Fiserv offers accessible and reliable technology to facilitate transactions and expand their customer base.

Innovation in a Digital-First World

The rise of digital banking and mobile payments has fundamentally altered how people interact with their finances. Fiserv is at the forefront of this digital revolution, continually investing in innovative technologies like cloud computing, artificial intelligence (AI), and blockchain. These technologies are being leveraged to enhance security, personalize customer experiences, and create new revenue streams. Such as, AI-powered fraud detection systems can analyze transaction patterns in real-time, identifying and preventing fraudulent activity with greater accuracy than customary methods.

A Commitment to Security and Reliability

In an era of increasing cyber threats, security is paramount.Fiserv prioritizes the protection of sensitive financial data,employing robust security measures and adhering to the highest industry standards.The company’s commitment to reliability ensures that financial transactions are processed accurately and efficiently, minimizing disruptions and maintaining customer trust. This dedication is reflected in their consistent recognition as a leader in security and compliance within the FinTech industry.

Looking Ahead: The Future of FinTech

The future of FinTech will be defined by further integration,personalization,and accessibility. Fiserv is well-positioned to lead this charge, continuing to innovate and deliver solutions that empower businesses and consumers to thrive in an increasingly digital world. The company’s ongoing investment in research and growth,coupled with its deep understanding of the financial landscape,ensures it will remain a driving force in shaping the future of financial technology.

Small Business Sales See March Boost: Analyzing the Fiserv Index

The spring season has sprung, and with it, a hopeful sign for small businesses across the nation. Recent data from the Fiserv Small Business Index points to a notable uptick in small business sales during the month of March. This positive trend sparks optimism and prompts crucial questions about the factors driving this growth, the industries benefiting most, and what small business owners can do to capitalize on this momentum. We’ll delve into the details of the Fiserv Index, explore the underlying causes of the increased sales, and offer practical advice for navigating the current economic landscape.

Understanding the Fiserv Small Business Index

The Fiserv Small Business Index is a crucial economic indicator that provides real-time insights into the health of the small business sector. Unlike lagging indicators that report on past performance, the Fiserv Index leverages transaction data to offer a timely snapshot of current sales trends. this makes it an invaluable tool for economists, analysts, and, most importantly, small business owners who need to make informed decisions about their operations. The Index tracks sales activity across a diverse range of industries and geographic locations, providing a complete view of the small business economy.

Here’s what makes the Fiserv Small Business Index so important:

• real-time Data: Offers up-to-date insights into current sales trends.
• Comprehensive Coverage: Tracks sales across various industries and regions.
• actionable Insights: Helps small business owners make informed decisions.
• Reliable Source: Based on actual transaction data, providing an accurate reflection of market activity.

Key Findings from the March Report

the latest data shows promising growth in small business sales during March. While the exact percentage increase may vary depending on the specific report and its segmentation, the overarching trend points toward a positive trajectory. Several key findings stand out:

• Overall Sales Growth: A general increase in sales volume across the board.
• Regional Variations: Some regions experienced more pronounced growth than others.
• Industry-Specific Performance: Certain sectors saw a meaningful surge in sales, while others remained relatively stable.
• Online Sales Impact A continued significant contribution from online sales, highlighting the importance of e-commerce strategies for small business success.

A Closer Look at Regional Performance

Geographic location plays a significant role in the performance of small businesses. In March, some regions of the country experienced more robust sales growth than others. Factors like local economic conditions, tourism, and seasonal trends can all contribute to these regional variations.For example,areas with strong tourism sectors likely benefited from increased visitor spending,while regions with growing populations experienced higher demand for goods and services. Understanding these regional nuances can help businesses tailor their strategies to specific markets and optimize their performance.

Industry Leaders and Laggards in March

The Fiserv data often highlights the varying performance of different industries. Sectors like restaurants, retail, and personal services may show significant growth, while others, such as construction or manufacturing, experience slower progress. This variance depends on factors like consumer demand, supply chain dynamics, and seasonal trends. As an example, warmer weather might boost sales for outdoor recreation businesses, while tax season could impact financial services firms. Recognizing these industry-specific trends can definitely help small business owners identify opportunities and navigate potential challenges.

Factors Driving the Sales Increase

Several economic and societal factors contribute to the observed increase in small business sales. These include:

• Consumer Spending: Increased consumer confidence and spending habits.
• Government Stimulus: Continued impact of government stimulus programs and tax incentives.
• Economic Recovery: Gradual recovery from the economic downturn caused by the pandemic.
• Seasonal Trends: March typically marks the beginning of the spring shopping season.

The Role of Consumer confidence and Spending

Consumer confidence is a key driver of economic growth. When consumers feel optimistic about the future, they are more likely to spend money, which in turn boosts sales for businesses. Factors like job security, wage growth, and overall economic stability all contribute to consumer confidence. Recent data indicate that consumer confidence has been on the rise, which has likely played a significant role in the increased sales observed by the fiserv Index. Businesses can capitalize on this trend by offering attractive products and services,providing excellent customer service,and creating a positive shopping experience.

Impact of Economic Recovery on Small Businesses

The ongoing economic recovery from the pandemic has had a profound impact on small businesses. As restrictions have eased and economic activity has picked up, many businesses have experienced a resurgence in sales. Though, the recovery has been uneven, with some sectors rebounding more quickly than others.Businesses that have adapted to the changing landscape by embracing e-commerce, diversifying their offerings, and implementing innovative strategies have been better positioned to thrive in the new normal. The Fiserv data provides valuable insights into the sectors and regions that are leading the recovery, allowing businesses to identify opportunities and make strategic adjustments.

Harnessing the Data: Practical Tips for Small Business Owners

The insights from the Fiserv Small Business Index can be incredibly valuable for small business owners looking to improve their performance. Here are some practical tips on how to leverage this data:

• analyze Industry Trends: Identify the sectors experiencing the most growth and align your business accordingly.
• Monitor Regional Performance: Tailor your strategies to specific regions based on local market conditions.
• Track Consumer Spending: Stay informed about consumer spending habits and adjust your offerings to meet demand.
• Embrace E-commerce: Invest in online sales channels to reach a wider customer base.
• Optimize Marketing Efforts: Target your marketing campaigns to reach the right customers at the right time.

Embracing E-commerce for Sustained Growth

In today’s digital age,having a strong online presence is essential for small business success. E-commerce allows businesses to reach customers beyond their local area, expand their market share, and increase their sales. Investing in a user-amiable website, optimizing your online store, and implementing effective digital marketing strategies can help you attract more customers and boost your bottom line. The Fiserv data consistently highlights the significant contribution of online sales, underscoring the importance of embracing e-commerce for sustained growth.

Leveraging Technology for Enhanced Efficiency

Technology can play a crucial role in streamlining operations, improving efficiency, and enhancing customer experience. Implementing tools like point-of-sale (POS) systems,customer relationship management (CRM) software,and accounting software can definitely help you manage your business more effectively and make data-driven decisions. by automating tasks, improving dialog, and gaining a better understanding of your customers, you can free up valuable time and resources to focus on growing your business. The fiserv Index underscores the importance of technology in driving small business success, especially in today’s competitive landscape.

Case Studies: Success Stories from the Field

Examining real-world examples of small businesses that have successfully navigated the market can provide valuable insights and inspiration.Here are a couple of hypothetical case studies:

Case Study 1: “The Corner Cafe” – Adapting to Changing Customer Preferences

The Corner Cafe,a local coffee shop,noticed a dip in foot traffic due to changing work habits and an increase in remote work. Using local data trends, they identified an increasing demand for online ordering and delivery services. By investing in a user-friendly mobile app and partnering with a local delivery service, The Corner Cafe quickly increased its sales, reaching a broader customer base without relying solely on in-store traffic. They also tailored their menu to cater to the growing demand for healthy snacks and plant-based options.

Case Study 2: “greenthumb Landscaping” – leveraging Seasonal Trends

GreenThumb Landscaping, a small landscaping business, leveraged seasonal trend data to optimize their marketing efforts. They noted the fiserv Index pointed to a rise in home enhancement spending in March. They launched a targeted social media campaign focusing on spring lawn care services and garden design. By offering special discounts for early bookings and showcasing their expertise through informative blog posts, GreenThumb Landscaping saw a significant increase in new client acquisition and overall revenue.

the Future of Small Business: Challenges and Opportunities

While the recent increase in small business sales is encouraging,it’s important to acknowledge the challenges that remain. Rising inflation, supply chain disruptions, and labor shortages continue to pose significant hurdles for many businesses. However,these challenges also present opportunities for innovation,adaptation,and growth. Businesses that can effectively manage these challenges by embracing technology, diversifying their offerings, and focusing on customer satisfaction will be well-positioned to thrive in the long term.

Navigating Inflation and Supply Chain Disruptions

Inflation and supply chain disruptions are two of the most pressing challenges facing small businesses today. Rising prices can squeeze profit margins and make it difficult to compete, while supply chain issues can lead to delays, shortages, and increased costs. To navigate these challenges, businesses should explore strategies like:

• Negotiate with Suppliers: Seek better pricing and payment terms.
• Diversify Supply Chains: Reduce reliance on single suppliers or regions.
• Optimize Inventory Management: Minimize waste and avoid overstocking.
• Raise Prices Strategically: Communicate value to customers and justify price increases.

The Importance of Customer Loyalty Programs

In an increasingly crowded marketplace, building customer loyalty is crucial for long-term small business success. Implementing customer loyalty programs, such as rewards points, discounts, and personalized offers, can help you retain existing customers and encourage repeat business. By fostering a sense of community and providing remarkable customer service, you can build lasting relationships with your customers and create a loyal following. Customer loyalty programs can be a powerful tool for driving sales and increasing profitability.

First-Hand Experience: A Small Business Owner’s Viewpoint

“As the owner of a small bookstore, The Book Nook, the past few years have been a rollercoaster. The initial lockdowns were tough, but adapting to online sales saved us. Utilizing facts like that from the Fiserv Index, I noticed local interest in specific genres was trending upwards one month, so I started featuring more of that genre. What I’ve learned, is that real-time data is essential for smart growth.” – Emily Carter, owner of The Book Nook.

Summary Table: Key Takeaways from the fiserv Index