In September, the business closure rate edged down 0.1 percentage points to 4.7%, following a 0.2 percentage point increase in August. The business opening rate edged up 0.1 percentage points for a second consecutive month to settle at 4.8% in September. Since January 2024, both the opening and the closure rates have been relatively stable and oscillating from 4.6% to 4.8%. In addition, the opening and the closure rates were both 0.1 percentage points above their respective 2015-to-2019 historical average.
As the number of business closures was lower than that of openings, the number of active businesses rose by 0.2% (+1,530) in September 2024, following the 0.1% contraction recorded in August. While real gross domestic product edged up 0.1% in September, payroll employment dropped by 0.3%, and business insolvency filings rose from 411 in August to 444 in September.
In September, business closures changed little in most sectors. Retail trade (+388 closures compared with August; +0.5 percentage point change in the closure rate) posted the largest change in business closures, followed by professional, scientific and technical services (+141; +0.1 percentage points) and construction (+126; +0.1 percentage points). Retail trade was also among the top three sectors in which businesses anticipated facing the most commonly expected challenges over the third quarter of 2024, including cost-related obstacles, rising inflation and rising cost of inputs.
Business openings were relatively unchanged in most sectors in September. The slight increase in openings in the business sector was driven by construction (+207 openings compared with August; 40.0% contribution to the increase in business sector openings), followed by administration and support, waste management and remediation services (+142; 27.5%) and real estate and rental and leasing (+88; 17.0%).
The two components of the opening rate moved in opposite directions in September. In fact, the increase in the opening rate was mitigated by the 0.1 percentage point decline in the entry rate (from 1.7% in August to 1.6% in September), as the reopening rate rose 0.2 percentage points (from 3.0% to 3.2%).
Chart 1: Monthly business openings and closures as a percentage of active businesses, business sector, January 2023 to September 2024, seasonally adjusted data
Source: Table 33-10-0270-01.
Note to readers
With each release, data for the preceding month are revised as additional information becomes available. This may also involve minor revisions to historical data due to seasonal adjustment. Users are encouraged to use the most up-to-date data available for each month.
More precisely, a sector's contribution is negative if it shows a decrease in active businesses, while the total number of active businesses has increased. Similarly, a sector's contribution is negative if it shows an increase in active businesses, while the total number of active businesses has fallen.
Reference
Data tables: 33-10-0270-01 and 33-10-0722-01.
- Note: some data tables may best be viewed on desktop.
Definitions, data sources and methods: survey number 5401.
Previous release: Monthly estimates of business openings and closures, August 2024.
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