U.S. Small Business Sales Growth Slows in July as Consumers Prioritize Value — Fiserv, Inc.

Event summary

Fiserv's Small Business Index shows U.S. small business sales grew 1.6% year-over-year in July, driven by higher average tickets (+3.2%) despite declining foot traffic (-1.6%).
Restaurant traffic continued to decline (-3.6%), while retail sectors like sporting goods and clothing saw gains.
Grocery spending focused on value, with sales up 0.6% year-over-year as transactions increased but average tickets fell.
The Fiserv Small Business Index remained at 145 in July, marking the second-strongest annual growth rate of 2026.

The big picture

Fiserv's data highlights a persistent trend of modest growth in U.S. small businesses, fueled by higher spending per transaction rather than increased customer visits. This reflects broader consumer caution amid economic uncertainty, with households prioritizing essentials and value-driven purchases. The divergence between goods and services sectors underscores shifting spending patterns that could reshape small business strategies.

What we're watching

Consumer Spending Shifts: How sustained value-oriented spending will impact small business revenue streams, particularly in discretionary categories.
Sector Disparities: Whether retail's resilience can offset continued declines in restaurant traffic and services sectors.
Economic Indicators: The pace at which broader economic conditions will influence small business sales trends beyond 2026.