Business Applications Up 4.5% and Business Formations Up 5.4%
The U.S. Census Bureau announced the following seasonally adjusted business application and formation statistics for March 2023. The Business Application Series describe the business applications for tax IDs as indicated by applications for an Employer Identification Number through filings of the IRS Form SS-4. The Business Formation Series describe employer business formations as indicated by the first instance of payroll tax liabilities for the corresponding business applications.
Business Applications for March 2023 were 451,752, an increase of 4.5% compared to February 2023.
Projected Business Formations (within 4 quarters) for March 2023 were 33,663, an increase of 5.4% compared to February 2023. The 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 33,663 new business startups with payroll tax liabilities will form within 4 quarters of application from all the business applications filed during March 2023. The 5.4% increase indicates that for March 2023 there will be 5.4% more businesses projected to form within 4 quarters of application, compared to the analogous projections for February 2023.
More Data Later This Week
More economic data will be released later this week, including MBA Mortgage Applications on Wednesday and Jobless Claims and Existing Home Sales on Thursday.