September in Review
Business startup activity continues to rise and is expected to reach record levels over the coming year. The startup ecosystem has advanced through several distinct phases over the past decade, with each period producing higher levels of business formation. The first major increase was driven by the pandemic-era surge in entrepreneurship, while the latest wave has been led by retail, software, professional services, and a broad range of other industries. These trends align with recent evidence showing improved small business profitability. The biggest drivers have been tariff refunds, which provided short-term cash support, and easing input-cost inflation.