U.S. business formation surges in January
10/02/2021 15:44
WASHINGTON, Feb 10 (Reuters) - Applications to start new
U.S. businesses jumped in January, suggesting economic activity
was steadily picking again, although the coronavirus pandemic
continues to pose a risk to growth.
The Commerce Department said on Wednesday business
applications surged 42.6% to a seasonally adjusted 492,133 last
month. The data is derived from business applications for tax
identifications.
There were a seasonally adjusted 54,635 applications from
corporations. Applications for businesses with planned wages
totaled 58,023. Overall, applications increased in all four
regions last month.
The COVID-19 pandemic has decimated businesses in the
services sector, especially restaurants and bars, leaving
millions unemployed.
The economy has recovered 12.3 million of the 22.2 million
jobs lost in March and April, when the pandemic started in the
United States. At least 17.8 million Americans are on
unemployment benefits.
(Reporting By Lucia Mutikani; Editing by Hugh Lawson)
((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters
Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))