Composite BFII reached 152.5 in Q1 2026, remaining elevated on a trailing basis. Momentum showed signs of moderation, while underlying formation measures continued to diverge.
The BFII is a quarterly indicator derived from U.S. Census Bureau Business Formation Statistics, designed to measure the level, composition, and momentum of early-stage business formation.
Business formation is often evaluated primarily through overall application volume. While informative, volume alone provides an incomplete view.
BFII extends beyond aggregate counts to examine how formation is evolving beneath the surface – across structural composition and directional momentum.