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U.S. applications to start a business fall in June for first time in 4 months

Published 07/15/2021, 03:56 PM
Updated 07/15/2021, 04:00 PM
© Reuters. A hiring sign is seen at the entrance to Burger Boy restaurant, as many restaurant businesses face staffing shortages in Louisville, Kentucky, U.S., June 7, 2021. Picture taken June 7, 2021.  REUTERS/Amira Karaoud

© Reuters. A hiring sign is seen at the entrance to Burger Boy restaurant, as many restaurant businesses face staffing shortages in Louisville, Kentucky, U.S., June 7, 2021. Picture taken June 7, 2021. REUTERS/Amira Karaoud

By Evan Sully

(Reuters) - Applications to start new U.S. businesses dropped sharply in June, falling for the first time since February.

The Commerce Department said on Thursday that business applications decreased 9.8% to a seasonally adjusted 448,553 last month. The data is derived from business applications for tax identifications.

There were a seasonally adjusted 51,543 applications from corporations, down 1.6% from May. Applications for businesses with planned wages totaled 52,325, a decrease of 7.6% from the prior month.

Business applications fell in all four U.S. regions, led by a 12.25 drop in the Midwest last month and were lower across all industries.

© Reuters. A hiring sign is seen at the entrance to Burger Boy restaurant, as many restaurant businesses face staffing shortages in Louisville, Kentucky, U.S., June 7, 2021. Picture taken June 7, 2021.  REUTERS/Amira Karaoud

The largest drop was in mining, which recorded a 25.7% decline, with other sizable drops in ,accommodation and food services as well as the administrative and support category.

Based on June's figures, the Commerce Department's Census Bureau, which compiles the data, projected about 32,990 new business start-ups with payroll tax liabilities would form within four quarters of application, down 6.9% compared with the estimates for May.

Latest comments

Funny, how's that possible since Jpow says economic growth is only speeding up... He can't possibly be wrong.
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