Applications to start new U.S. businesses fell in February even as economic activity picked up amid an improving public health situation, government data showed on Wednesday.
FILE PHOTO: Essential business adapts to staying open during the outbreak of the coronavirus disease in San JoseWASHINGTON: Applications to start new U.S. businesses fell in February even as economic activity picked up amid an improving public health situation, government data showed on Wednesday. The Commerce Department said business applications decreased 13.4per cent to a seasonally adjusted 423,095 last month. The data is derived from business applications for tax identifications.There were a seasonally adjusted 48,749 applications from corporations down 10.4per cent from January. Applications for businesses with planned wages totaled 51,071, a decrease of 12.9per cent from the prior month.
Overall, business applications fell in all four regions last month. The COVID-19 pandemic has decimated businesses in the services sector, especially restaurants and bars, leaving millions unemployed.
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