Canada Sees 62,560 Businesses Close Their Doors In May

Things might be looking up for the Canadian economy, if only marginally. The amount of businesses in Canada that closed in May 2020 saw a slight decline from that of April 2020, while still being the second highest month on record since reporting began as the effects of the coronavirus continue to play out.

The month of May 2020 saw a total of 62,560 businesses across Canada close their doors, as compared to 87,998 businesses in April. This compares to the 39,321 operations that saw their doors shut in February 2020, which seems to be roughly average based on the data that first began in 2015. Statistics Canada noted that business closures fell across all provinces, however a province by province breakdown was not provided.

Business closures impacted the construction industry the most, with 8,589 closures during the month, as compared to 12,820 business closures in April. Utilities were the least impacted, with 25 closures, as compared to 33 closures in the previous month.

In terms of active operations, a total of 689,907 businesses were in operation over the course of the month, as compared to 715,501 in April and 797,582 in February 2020. The decline in operating businesses was slightly offset with 37,724 operations that began during the month, an increase from 35,597 in April and inline with the 35,652 that opened their doors in February 2020. The increase in new operations was attributed to easing lockdown restrictions across the country that began at the tail end of the month.

Continuing operations meanwhile fell to an estimated 651,523, as compared to 679,372 in the month prior, and 762,285 in February 2020.

Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.