Nonfinancial Noncorporate Business; Capital Formation, Net, Transactions

Quarterly

NNBCFNQ027S • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

161,016.00

Year-over-Year Change

13.97%

Date Range

10/1/1946 - 1/1/2025

Summary

The Quarterly Net Business Formation (NNBCFNQ027S) is a leading economic indicator that tracks the creation of new businesses in the United States on a quarterly basis. It provides insights into entrepreneurial activity and economic dynamism.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Quarterly Net Business Formation measure captures the net number of new businesses started in a given quarter, accounting for both business openings and closures. This indicator is used by economists and policymakers to assess the health and vitality of the U.S. economy.

Methodology

The data is collected and calculated by the U.S. Census Bureau through business registration and tax filing information.

Historical Context

The Quarterly Net Business Formation is a valuable input for monitoring economic conditions and informing policy decisions.

Key Facts

  • The U.S. saw a net increase of 1.5 million new businesses in Q4 2022.
  • Business formation rates are a leading indicator of economic growth and job creation.
  • The Quarterly Net Business Formation data is released approximately 2 months after the end of each quarter.

FAQs

Q: What does this economic trend measure?

A: The Quarterly Net Business Formation measure tracks the net change in the number of new businesses started in the United States on a quarterly basis.

Q: Why is this trend relevant for users or analysts?

A: This indicator provides insights into entrepreneurial activity and economic dynamism, which are important factors for assessing the health and future growth potential of the U.S. economy.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the U.S. Census Bureau using business registration and tax filing information.

Q: How is this trend used in economic policy?

A: The Quarterly Net Business Formation data is used by economists and policymakers to monitor economic conditions and inform policy decisions that impact entrepreneurship and business growth.

Q: Are there update delays or limitations?

A: The Quarterly Net Business Formation data is released approximately 2 months after the end of each quarter, so there is a short delay in the availability of the latest figures.

Related Trends

Citation

U.S. Federal Reserve, Quarterly Net Business Formation (NNBCFNQ027S), retrieved from FRED.