Applications to start new U.S. businesses tumbled last week, the latest indication that stringent measures to control the spread of the novel coronavirus had brought the economy to its knees.
The Commerce Department said on Thursday business applications dropped 21.4per cent in the week ending April 11, compared with the same period last year.The department's Census Bureau, which compiles the data, said the new weekly series provides"timely and granular information on potential new business development and can provide insight on the state of the economy."
At least 22 million people have filed for unemployment benefits in the last four weeks. Retail sales suffered a record drop in March and output at factories declined by the most since 1946. Homebuilding crumbled in March at a speed not seen in 36 years. Economists believe the economy contracted at its steepest pace since World War Two in the first quarter.
A historic US$2.3 trillion fiscal package signed by President Donald Trump last month made provisions for small businesses to access loans that could be partially forgiven if they were used for employee salaries, rent, mortgage interest and utility costs.