Business Formations Predicted to Increase in Western States

August 26, 2024

Delaney Sexton
Contributing Editor

Business Formations Predicted to Increase in Western States

In July 2024, the U.S. Census Bureau reported that there were almost 421,000 business applications. Nearly 45% of business applications in July 2024 were from the South, and almost a quarter were from the West. July saw fewer business applications than June with a 2% decrease in applications.

In general, new business formations are projected to decline in the United States, but one area is anticipated to grow. New businesses are expected to increase only in the Western United States. Though projected business formations dropped, the decrease is minimal.

Retail trade is the leading industry for new business applications, followed by professional services and construction. Administration & Support and Transportation & Warehousing had the fewest applications but yielded similar numbers of business applications.

From June 2024 to July 2024, Educational Services business applications increased by 5.2%, seeing the biggest boost this month. Transportation & Warehousing also improved, increasing by 3.1%.

Retail Trade and Construction saw the biggest drop in business applications in July 2024. Business applications for Retail Trade fell by almost 10%, while Construction business applications declined by 5.5%.

Source:
U.S. Census Bureau Business Formation Statistics July 2024