Business creation falls 7.9% in October after two months on the rise

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In the tenth month of the year, 7,391 new companies were created to return to negative annual rates

The number of new mercantile companies fell by 7.9% in October compared to the same month of 2019, reaching a total of 7,391 new companies, according to data released this Monday by the National Institute of Statistics (INE).

With the year-on-year decline in October, business creation returned to a negative path after chaining two consecutive months of promotions.

In the harshest months of the pandemic, business creation registered historic declines, especially in April, when it dropped 73%.

Likewise, the number of mercantile companies dissolved in October was 1,589, 8.8% less than in the same month of 2019.

In the monthly rate (October over September), company formation grew 12%, while business dissolutions fell 2.1%.

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