Small Business Climate Remains Constant in August as Consumer Resilience Balances with Cautious Spending Patterns (According to Fiserv Small Business Index)

In August 2025, the economic landscape showed a mixed bag of results, with some sectors experiencing growth while others faced challenges.

According to the latest Fiserv Small Business Index, the seasonally-adjusted Index held steady at 149 for August 2025. This stability was reflected in the retail sector, where foot traffic increased by 1.4% month over month. However, inflation-adjusted sales in retail fell by 1.4% year over year, indicating a shift in consumer behaviour.

The story was different for the restaurant industry, where foot traffic grew by 3.4% year over year. Quick service restaurant (QSR) sales grew by an impressive 8.3% year over year, suggesting that consumers opted for fast and affordable dining options. Despite this growth, the specific restaurant chain that saw a revenue increase of 8.3% while losing the most customers remains unidentified. Chili's, however, noted a significant revenue increase of 24%, and Guzman Y Gomez exceeded earnings expectations, but detailed revenue and customer loss information for August 2025 is not available.

The sales growth in the restaurant industry was 2.1% month over month, while services sales slipped (-0.5%) during the same period. Interestingly, year-over-year sales growth for August 2025 increased by 3.9%, with services sales growth outpacing goods (+4.8% vs +2.0%). This trend was also reflected in average ticket sizes, which grew by 0.3% compared to 2024.

In the wholesale trade sector, foot-traffic is declining due to macroeconomic pressure pushing ticket sizes higher. Despite this, average tickets in wholesale trade grew by 2.3% month over month and 5.8% year over year. Wholesale sales slipped by 0.3% month over month, while year-over-year sales growth was 3.1%.

Discretionary spending grew by 2.0% compared to 2024, and retail sales grew by 1.1% month over month. The decrease in average ticket sizes in August 2025 was driven by consumers prioritizing value-driven purchases. Essentials, on the other hand, fell by 1.5% month over month, while compared to 2024, Essentials rose by 5.9%. Discretionary spending rose by 1.2% month over month.

In conclusion, while the retail and restaurant sectors showed varying results in August 2025, the overall trend suggests a shift towards value-driven purchases and a growing preference for fast and affordable options. The specific restaurant chain that experienced both a revenue increase and customer loss remains undetermined. Future economic reports will provide more insights into these trends and their implications for businesses and consumers alike.

Small Business Climate Remains Constant in August as Consumer Resilience Balances with Cautious Spending Patterns (According to Fiserv Small Business Index)