Business openings fell 50% annually in Q2 amid recession fears: Equifax
Global News
Jeff Brown, Equifax's head of commercial solutions, says normally around 100,000 businesses open in the second quarter of each year.
Equifax Inc. says new business openings in the second quarter of 2022 were down almost 50 per cent compared to a year ago.
New business openings were also down by almost 49 per cent compared to the same quarter in 2019.
Jeff Brown, Equifax’s head of commercial solutions, says normally around 100,000 businesses open in the second quarter of each year.
Brown sees the significant drop in new openings as a sign of the potential impending recession.
He says small businesses, which make up the bulk of new openings, are struggling with inflation, decreased consumer spending, increased debt from pandemic loans, and supply chain problems.
The credit reporting agency says debt levels, delinquencies and bankruptcies are creeping back up toward pre-pandemic levels as stresses on businesses rise.
The move by the United States Postal Service comes after some 55,000 Canada Post workers walked off the job more than two weeks ago.
The Canadian economy underperformed the Bank of Canada's call for 1.5 per cent annualized growth in the third quarter, and per-capita GDP fell for a sixth consecutive quarter.