U.S. business formation tumbles 28.5% in fourth quarter
14/01/2021 16:25
WASHINGTON, Jan 14 (Reuters) - Applications to start new
U.S. businesses plunged in the fourth quarter as COVID-19
continued to ravage the economy, supporting views that it could
take years to recover the millions of jobs lost during pandemic.
The Commerce Department said on Thursday business
applications dropped 28.5% to a seasonally adjusted 1.115
million last quarter. All four regions recorded a decrease, with
steep declines in the Midwest, South and West.
The coronavirus crisis has worsened, with restaurants and
other consumer-facing businesses suffering the most. The economy
has recovered 12.4 million of the 22.2 million jobs lost in
March and April, when the crisis started in the United States.
At least 18.4 million Americans are on unemployment
benefits. Economists expect employment will return to its
pre-pandemic level in the 2023.
The Commerce Department's Census Bureau, which compiles the
business formation data, said the report will no longer be
released on a quarterly basis. Instead, reports will be
published monthly starting with January data, which will be
released on Feb. 10.
(Reporting By Lucia Mutikani; Editing by Kirsten Donovan)
((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters
Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))