The Census just released (on 9/9) the latest business formation statistics for August 2021. Business applications are down across the country - 4.7% (compared to July 2021).
Business formations are projected to decrease across the country.
Business Applications: Business applications for August 2021, adjusted for seasonal variation, were 427,842, a decrease of -4.7% compared to July 2021.
As a reminder, business applications describe the business applications for tax IDs as indicated by applications for an Employer Identification Number (EIN) through filings of the IRS Form SS-4.
Geography.
Decreases across the country:
Northeast (-1.1%)
Midwest (-5.2%)
South (-6.2%)
West (-3.6%)
Industry.
Almost all industries were down with the exception of Real Estate (+1.2%) and Mining (+6.6%).
Business Formations. Projected business formations (within 4 quarters) for August 2021 were at 31,994, a decrease of 4.5 percent compared to July 2021.
Reminder: Business formations describe employer business formations as indicated by the first instance of payroll tax liabilities for the corresponding business applications.
Note that projected business formations are forward-looking, providing an estimate of the number of new business startups that will appear from the cohort of business applications in a given month. It does not provide an estimate of the total number of business startups that appeared within a specific month. In other words, the Census Bureau is projecting that 31,994 new business startups with payroll tax liabilities will form within 4 quarters of application from all the business applications filed during August 2021. The 4.5 percent decrease indicates that for August 2021 there will be 4.5 percent fewer businesses projected to form within 4 quarters of application, compared to the analogous projections for July 2021.
Prepared by Preference Analytics. www.preferenceanalytics.com
admin email: maggie@preferenceanalytics.com
Source: US Census, Economic Indicators Division, Business Formation Statistics
https://www.census.gov/econ/bfs/pdf/bfs_current.pdf
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