Small business sales rose in December as higher spending per purchase and steady demand for essentials helped close out the year on a modestly positive note, according to the latest Fiserv Small Business Index.

Year-over-year sales increased 1.6% in December, while sales rose 0.8% from November. Transaction volume was flat for the month, Fiserv reported.

Average ticket sizes increased 2% from a year earlier, indicating consumers spent more per transaction during the holiday season. The seasonally adjusted Fiserv Small Business Index rose to 144.

Retail sales among small businesses climbed 0.9% month over month and 0.3% year over year. Core retail sales, which exclude more volatile categories, rose 1.1%. Sporting goods led the annual retail gains, rising 5.2%, supported by a 5.8% increase in foot traffic.

Sales in essential categories continued to outperform discretionary purchases, growing 2.8% year over year vs. a 0.7% increase for discretionary items. Grocery sales slipped 0.3% despite a 0.2% rise in foot traffic.

“December’s sales gains show the resilience of small businesses during a competitive holiday season,” said Prasanna Dhore, Chief Data Officer at Fiserv. “Consumers focused on essentials and made selective discretionary purchases, driven by ongoing cost pressures. These patterns, resulting in modest monthly sales growth, highlight how small businesses continue to adjust in a challenging economic climate.”

Small business restaurant sales showed little change in December, rising 0.1% from a year earlier and remaining flat from November. A 1.5% decline in year-over-year foot traffic contributed to the muted growth, according to Fiserv.

Limited-service restaurants outperformed full-service restaurants on an annual basis, posting a 0.5% increase vs. a 0.6% decline for full-service establishments. Bar sales rose 1% year over year, driven entirely by increased foot traffic.

Sales increased in 43 of 50 states in December, a sharp rise from November, when only 11 states posted gains. Large states including California, up 1.6%, and Texas, up 1.1%, contributed significantly to overall growth. New York, Colorado and Pennsylvania were among the states reporting month-over-month declines.

The Fiserv Small Business Index is based on point-of-sale transaction data, including card, cash and check payments made in stores and online across roughly 2 million U.S. small businesses.