US Business Formations

Data Macro

Source: Census Bureau
Source Link: https://www.census.gov/
Frequency: Monthly
Next Release(s): October 8th, 2025 10:00 AM

Latest Updates

U.S. business applications edged up +0.5% MoM in August 2025 to 473,679, with gains in corporate and high-propensity filings offset by a sharp drop in applications with planned wages.
- High-propensity applications rose +0.8% MoM to 169,871, signaling a modest rise in firms with strong potential for growth.
- Applications with planned wages fell -7.8% MoM to 40,386, the steepest decline across categories, pointing to fewer businesses planning payrolls at the outset.
- Corporate applications increased +4.2% MoM to 76,587, their strongest gain since early 2025.
- Regionally, the Midwest (+1.9% MoM) and South (+1.0% MoM) led total applications, while the West (-1.2% MoM) posted the only regional decline.
- Projected business formations within 4 quarters rose +0.8% MoM to 28,725, while 8-quarter projections gained +0.9% MoM to 39,833, with the South driving the increases.
- By industry, construction (+20.7% MoM), agriculture (+4.6% MoM), and accommodation & food services (+2.5% MoM) posted the largest gains, while mining (-6.4% MoM), arts & entertainment (-2.5% MoM), and real estate (-2.2% MoM) declined.
U.S. business applications rose +2.6% MoM in July 2025 to 470,571, led by gains in the South and Midwest, while the West and Northeast saw modest declines.
- High-propensity applications rose +1.4% MoM to 168,155; applications with planned wages increased +1.9% MoM to 43,952; applications from corporations gained +1.0% MoM to 73,569.
- Industry growth was strongest in utilities (+9.1% MoM), management of companies (+7.2%), and real estate (+5.3%), while construction (-5.9% MoM) and manufacturing (-3.6%) posted the largest declines.
- Regionally, total applications rose +5.0% MoM in the South and +4.8% in the Midwest, but fell -0.9% in the West and -1.0% in the Northeast.
- Projected business formations within 4 quarters edged up +0.3% MoM to 28,494, while those within 8 quarters slipped -0.1% MoM to 39,468, with weakness concentrated in the West and Northeast.
Total U.S. business applications rose 2.2% MoM in June to 457,407, led by a surge in corporate applications and broad-based industry gains.
- High-propensity business applications increased 3.3% MoM to 165,555, while applications with planned wages declined -1.1% MoM to 43,075.
- Corporate applications rose 7.6% MoM to 72,702, the strongest growth category.
- Industry-level gains were led by retail trade (+6.1% MoM), health care & social assistance (+5.8% MoM), finance & insurance (+3.7% MoM), and real estate (+4.5% MoM).
- Only two major sectors saw declines: professional services (-0.4% MoM) and administrative support (-0.3% MoM).
Projected business formations were little changed:
- Projected formations within 4 quarters rose 0.1% MoM to 28,376, and within 8 quarters rose 0.2% MoM to 39,414.
- Formation trends remain stable with modest upward drift, consistent with recent months.
Total U.S. business applications fell -0.6% MoM in May to 446,993, driven by declines in the West and weakness across several major industries.
- High-propensity business applications rose 1.6% MoM to 159,009, with gains concentrated in the South and Midwest.
- Applications with planned wages edged down -0.7% MoM, with a -3.8% MoM decline in the West offsetting small increases elsewhere.
- Applications from corporations rose 2.0% MoM to 66,891, the strongest category in the report.
- The largest industry gains were in retail trade (+9.4% MoM), professional services (+1.9% MoM), and accommodation & food services (+10.3% MoM).
- However, business applications fell sharply in construction (-5.5% MoM), finance & insurance (-5.5% MoM), and utilities (-4.5% MoM).
Projected business formations also softened:
- Projected business formations within 4 quarters fell -0.1% MoM to 28,303; within 8 quarters they declined -0.4% MoM to 39,220.
- Regional weakness was led by the West (-3.8% MoM within 4 quarters, -4.0% MoM within 8 quarters), while the South showed modest growth.
Total US business applications fell -0.9% MoM in April, a slight decline following two strong months in March and February.
- High propensity applications dropped -3.6% MoM, driven by large declines in the Northeast and the West regions.
- Applications that included planned wages edged down -0.5% MoM.
- The industries reporting the largest declines in applications were information (-5.8% MoM), retail (-5.7% MoM), and professional services (-2.1% MoM).
- Applications for new manufacturing businesses were up 2.6% MoM in April and up 1.1% MoM in March.
- The cooler reading of business applications led to drop of -1.1% MoM in the projection of business formations in the next 4 quarters.
Total US business applications increased 6.4% MoM in March, building on the 7.8% MoM increase in February.
- High propensity applications surged 10.7% MoM, the second strong monthly increase in a row.
- Applications that included planned wages edged down -0.1% MoM.
- The industries reporting the largest increase in applications were retail (+22.5% MoM), information (+18.7% MoM), and professional services (+10.2% MoM).
- Applications for new manufacturing businesses were only up 1.1% MoM.
- With the surge in applications, the projection of business formations in the next 4 quarters increased 5.0% MoM to 28,524.
Total US business applications increased 7.8% MoM in February with high propensity applications up 4.7% MoM.
- Business applications with planned wages were up 6.2% MoM.
- Business applications were up across all industries with the largest increases in information (+12.4% MoM), finance & insurance (+11.8% MoM), accommodation & food services (+10.9% MoM), and management of companies (+14.7% MoM).
- The projection of business formations within the next 4 quarters is up 10.2% MoM and within the next 8 quarters is up 9.2% MoM.
Total US business applications fell -14.0% MoM in January after a modest 1.5% MoM increase in December.
- High-propensity applications were also down sharply at -11.3% YoY with the down trend spread out across all regions.
- Projected business formations over the next quarter were down -14.3% MoM with all industries affected by the downturn in business starts.
US business applications grew 1.5% MoM in December, although total high-propensity applications fell -1.1% MoM. Based on applications, projected business formations within the next year is up 2.6% MoM to 28,834.