NEW YORK — December turned out to be a prosperous month for small businesses as holiday shoppers raced to finalize their purchases.
This observation comes from the Fiserv Small Business Index, which closely monitors these trends.
Across the United States, the seasonally adjusted index for December reached a score of 146, reflecting a 3-point increase from November.
This index is calculated using point-of-sale data which encompasses transactions made with cards, cash, and checks, both in-store and online, across approximately 2 million small businesses.

“Small business sales saw steady growth in December, even as consumer spending behaviors began to shift,” noted Prasanna Dhore, the Chief Data Officer at Fiserv.
“Importantly, consumers directed a larger portion of their spending toward service-oriented businesses. Retail sectors also showed robustness, while dining out experienced a dip, with average transaction amounts at restaurants on the decline.”

According to Fiserv, sales at small businesses grew by 4.9%, and the total number of transactions surged by 5.5% when compared to December of the previous year.
This trend mirrors what is happening at larger retailers as well.
The National Retail Federation, the leading trade group for retail, indicated that holiday sales for November and December rose by 4% to a total of $994.1 billion compared to the same timeframe last year.
For the holiday season of 2023, there was also a notable increase of 3.9% in sales relative to the previous two-month period.
These figures surpassed the group’s expectations, which anticipated a growth range of 2.5% to 3.5%.

In the realm of small businesses, retail spending proved to be particularly strong.
Retail sales climbed by 4.9% in December, while transaction levels increased by 5.8%.
Key categories driving sales included general merchandise, apparel, footwear, jewelry, furniture, electronics, appliances, and groceries.
Nonetheless, the restaurant sector faced challenges.
Sales dipped by 3.4% compared to December of the prior year, despite a 4.1% rise in the number of transactions.
Full-service restaurants, including both upscale and family dining options, reported the weakest sales performance, whereas quick service and fast casual establishments fared better.
The contrast between sales figures and transaction counts was largely due to a significant drop in average ticket values, which fell by 7.4% when looking back at 2023.