Fiserv’s latest small business index held steady in May, while sales increased year over year as well as from the previous month.

The Fiserv Small Business Index is an indicator of the performance of U.S. small businesses. For May, New Jersey came in just under the national index value (143 and 145, respectively). However, the local figure was up by 1.4% month over month and 3.7% year over year.

According to Fiserv Head of Merchant Solutions Jennifer LaClair, the May figures show that consumers are still spending, though at a slightly slower pace.

“Consumer spending recorded another uptick in May, though consumers are keeping a closer eye on their discretionary purchases,” commented Prasanna Dhore, chief data officer, Fiserv. “We’re also seeing a shift toward non-discretionary spending, as spending growth at grocery stores, for example, outpaced that at restaurants.”

In the Garden State, sectors leading small business sales in May included:

• Food Services and Drinking Places
• Professional, Scientific, and Technical Services
• Food and Beverage Retailers

According to the May data, New Jersey was not in the top five of most active or least active states.

Looking closer

Across the nation, Fiserv said there was a slowdown in retail spending.

Additionally, the company noted a shift in where consumers are spending money on food. While restaurant spending was up year over year (4.1%) and slightly month over month, foot traffic to eateries was down 1.2% compared to April. At the same time, trips to food and beverage retailers, like grocers, grew 8.4% year over year and posted a 1.5% month-over-month increase.

The Garden State’s No. 2 growth category also made gains nationally. Nationwide, Professional, Scientific, and Technical Services saw sales go up 12.5% year over year, despite a 0.7% decline from April. Fiserv said that change was expected with the close of tax season.

Fortune 500 company Fiserv has a significant presence in New Jersey, including from its hub at The Park in Berkeley Heights. The financial technology and payments organization introduced the Small Business Index at the start of 2024.

Published the first week of each month, the index is based on direct aggregation of consumer spending activity via point-of-sale transaction data including in-store and online card, cash and check transactions from approximately 2 million U.S. small businesses.