WASHINGTON — Americans continued to file new business applications at a robust pace in June despite elevated borrowing costs, persistent inflation concerns and slower hiring, underscoring the resilience of entrepreneurial activity even as broader economic pressures weighed on growth.
The U.S. Census Bureau said more than 531,000 seasonally adjusted business applications were filed in June, up 1.1% from May. The agency estimated that nearly 29,700 of those applications are expected to develop into employer businesses within four quarters, a 0.7% monthly increase.
The latest figures extend a period of historically strong business formation that began during the COVID-19 pandemic and has remained above pre-pandemic levels, according to Census Bureau data. Millions of new business applications have been submitted nationwide over the past several years, although not all are expected to become operating firms with employees.
The steady pace of new filings comes as many small businesses continue to contend with higher financing costs, inflation and labor shortages. The National Federation of Independent Business said its Small Business Optimism Index improved in June, though inflation remained the single most important problem cited by business owners, while many firms also reported difficulty filling open positions.
Recent economic indicators have painted a mixed picture of the U.S. economy. Consumer spending has remained relatively resilient, supported by steady retail sales and a still-stable labor market, even as economists warn that higher prices and slowing wage growth could weigh on demand later in the year.
Other sectors have shown signs of strain. Single-family home construction declined for a third straight month in June as elevated mortgage rates and construction costs curbed new projects, highlighting uneven conditions across the economy.
The Census Bureau's Business Formation Statistics are based on applications for Employer Identification Numbers filed with the Internal Revenue Service and are widely used as an early indicator of entrepreneurial activity. The agency cautions that business applications do not necessarily translate into operating companies, and projected business formations are estimates of firms expected to begin paying payroll taxes within a specified period.
The Census Bureau is scheduled to publish its next monthly Business Formation Statistics release in August, providing updated figures on business applications and projected formations across the United States.
