Holiday Sales Boost Small Businesses in December

In December, small businesses in the US experienced a robust holiday shopping season, according to the Fiserv Small Business Index. The index rose to 146, a 3-point increase from November, based on transactions from about 2 million small businesses. Prasanna Dhore, Fiserv's Chief Data Officer, noted a shift in consumer patterns, highlighting "consumers diverted more spend to service-based business," even as retail spending remained strong.

Sales at small businesses saw a 4.9% rise from the previous December, with transactions up by 5.5%, indicating similar trends to those observed in larger businesses. The National Retail Federation reported holiday sales climbed 4% to $994.1 billion for November and December, exceeding expectations of a 2.5% to 3.5% increase. Noteworthy selling categories included general merchandise, clothing, and groceries.

Conversely, the restaurant sector struggled, with sales declining by 3.4% over the same period the previous year, despite a 4.1% increase in transactions. The average restaurant ticket size dropped by 7.4%, pulling down overall sales. Full-service dining establishments faced more challenges compared to quick service and fast casual eateries, which showed relatively stronger performance. (This story was generated by Newser's AI chatbot. Source: the AP)