Small Business Sales Rise 1.3% YoY in August, but Foot Traffic Declines for 10th Straight Month
Event summary
- Fiserv's Small Business Index shows August 2026 sales up 1.3% YoY, but foot traffic declined -1.8% YoY.
- Restaurant sales fell -0.3% YoY, with limited-service restaurants down -2.5% YoY.
- Gas station sales surged +15.1% YoY due to higher oil prices and geopolitical pressures.
- Retail sales grew +0.6% YoY, but month-over-month growth slowed -0.8%.
- Essentials spending outpaced discretionary spending, growing +1.8% YoY vs. +0.9% YoY.
The big picture
Fiserv's data highlights a persistent shift in consumer behavior, with shoppers prioritizing value and making fewer but higher-value purchases. This trend poses challenges for small businesses, particularly in discretionary sectors like limited-service restaurants. The divide between essentials and discretionary spending also reflects broader economic uncertainties, where consumers are tightening budgets while still meeting basic needs.
What we're watching
- Consumer Spending Patterns
- How sustained high average ticket sizes will affect small business profitability amid declining foot traffic.
- Sector Disparities
- Whether essentials spending can continue outpacing discretionary categories as economic pressures mount.
- Geopolitical Influences
- The pace at which geopolitical tensions will impact gas station sales and broader retail trends.