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Business openings fell 50% annually in Q2 amid recession fears: Equifax

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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.

Read more: Recession fears put housing plans on hold for 41% planning to buy or sell: Re/Max

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.

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The credit reporting agency says debt levels, delinquencies and bankruptcies are creeping back up toward pre-pandemic levels as stresses on businesses rise.

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