US Corporate Bankruptcies Hit 15-Year High
The U.S. economy is showing alarming signs of distress, as a wave of corporate bankruptcies sweeps through major industries at the fastest pace since the 2008 financial crisis.
According to S&P Global Market Intelligence, 371 large American companies filed for bankruptcy in the first half of 2025—marking the highest six-month total in 15 years and surpassing last year's figure of 335 filings. The current tally is more than double the number recorded during the same period in 2022.
In June 2025 alone, 63 companies declared bankruptcy, continuing a rapid monthly trend that saw 64 filings in May.
Industrials and consumer discretionary companies topped the list of affected sectors, with 58 and 49 bankruptcy filings, respectively. The healthcare sector followed with 27 filings, highlighting a broader systemic strain across the U.S. economy.
'We're witnessing critical stress levels in corporate America,' said one analyst familiar with the data. 'This is not a sector-specific phenomenon—it's structural.'
What's Behind the Surge in Bankruptcies?
The bankruptcy spike reflects a perfect storm of economic challenges, including:
Soaring interest rates, which are raising the cost of capital and tightening liquidity for businesses dependent on debt.
Persistent supply chain disruptions, which have increased input costs and delayed production timelines.
Weak consumer spending, driven by real income stagnation and inflation fatigue.
Ongoing tariff-related tensions, stemming from trade disputes initiated under President Donald Trump, which have strained relations not only with China but also with key U.S. allies.
While many U.S. companies had weathered the shocks of the COVID-19 pandemic and early inflation surges, the cumulative effect of high borrowing costs and slowing demand is now forcing difficult financial reckonings, especially for highly leveraged firms.
One of the most immediate and visible pressures is the Federal Reserve's aggressive interest rate policy, which has not only cooled inflation but also crippled borrowing-dependent businesses.
'Higher interest rates are not just squeezing households—they're suffocating businesses that rely on debt to fund equipment purchases, restock inventory, pay salaries, or expand operations,' explained an economist from a New York-based think tank.
The impact is particularly severe for small- and mid-sized enterprises that lack access to cheaper capital or diversified revenue streams.
Despite a resilient labor market and headline growth figures that have remained positive, the sharp rise in bankruptcies is sounding alarm bells. Economists warn that the U.S. could be heading into a period of stagflation-lite, where growth slows, but inflation and borrowing costs remain elevated.
Some observers believe the crisis may deepen if the Federal Reserve does not pivot toward monetary easing in the coming quarters—though others argue that inflation remains too sticky to justify rate cuts just yet.
The rising bankruptcy rate is also contributing to a growing sense of insecurity among American consumers and workers. Despite nominal wage growth, many households feel poorer—a phenomenon some economists are calling the "illusion of wealth".
With more companies collapsing, layoffs could increase, potentially undermining one of the few bright spots in the economy: employment.
read more
CBE: Deposits in Local Currency Hit EGP 5.25 Trillion
Morocco Plans to Spend $1 Billion to Mitigate Drought Effect
Gov't Approves Final Version of State Ownership Policy Document
Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister
Qatar Agrees to Supply Germany with LNG for 15 Years
Business
Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves
Business
Suez Canal Records $704 Million, Historically Highest Monthly Revenue
Business
Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday
Business
Wheat delivery season commences on April 15
News
Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters
News
China Launches Largest Ever Aircraft Carrier
Sports
Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer
Videos & Features
Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall
Lifestyle
Get to Know 2025 Eid Al Adha Prayer Times in Egypt
Business
Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War
News
"Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence"
News
Flights suspended at Port Sudan Airport after Drone Attacks
Arts & Culture
Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language
Videos & Features
Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al-Ahram Weekly
4 hours ago
- Al-Ahram Weekly
Syria signs $800 mln port deal with UAE-based company: State media - Markets & Companies
Syria signed a $800 million deal with UAE-based company DP World on Sunday to develop the port of Tartus, state media reported, as the new authorities continue their efforts to support post-war reconstruction. Following the toppling of longtime Syrian ruler Bashar al-Assad in December, the new Islamist authorities have worked to reconnect the country to global companies and kickstart reconstruction after 14 years of civil war. "In the presence of President Ahmed Al-Sharaa, an agreement was signed between the General Authority for Land and Sea Ports and DP World, valued at $800 million, as a strategic step aimed at enhancing port infrastructure and logistics services in Syria," state-run news agency SANA said. Following the signing of the deal, DP World CEO Sultan Bin Sulayem said Syria's economy had "significant assets, including the Port of Tartus, which represents an opportunity to transport and export many Syrian industries". In a statement also shared by state media, he pledged to make Tartus "one of the best ports in the world". DP World operates dozens of marine and inland ports and terminals globally, particularly in Asia, Africa and Europe The Syrian civil war devastated the country's infrastructure, and the new authorities hope to use the lifting of Western sanctions to attract investments and fuel reconstruction efforts. Qutaiba Badawi, head of the General Authority for Land and Sea Ports, said the parties were "not merely signing a technical agreement, but we are laying the foundation for a new phase of field and maritime work in Syria, repositioning ourselves on the regional and international economic map". In May, Damascus signed a 30-year contract with French shipping giant CMA CGM to develop and run the port of Latakia. That same month, Syria signed a $7 billion energy deal with a consortium of Qatari, Turkish and US companies as part of efforts to revive its crippled power sector. Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
5 hours ago
- Al-Ahram Weekly
Syria signs $800 mln port deal with UAE-based company: State media - Economy
Syria signed a $800 million deal with UAE-based company DP World on Sunday to develop the port of Tartus, state media reported, as the new authorities continue their efforts to support post-war reconstruction. Following the toppling of longtime Syrian ruler Bashar al-Assad in December, the new Islamist authorities have worked to reconnect the country to global companies and kickstart reconstruction after 14 years of civil war. "In the presence of President Ahmed Al-Sharaa, an agreement was signed between the General Authority for Land and Sea Ports and DP World, valued at $800 million, as a strategic step aimed at enhancing port infrastructure and logistics services in Syria," state-run news agency SANA said. Following the signing of the deal, DP World CEO Sultan Bin Sulayem said Syria's economy had "significant assets, including the Port of Tartus, which represents an opportunity to transport and export many Syrian industries". In a statement also shared by state media, he pledged to make Tartus "one of the best ports in the world". DP World operates dozens of marine and inland ports and terminals globally, particularly in Asia, Africa and Europe The Syrian civil war devastated the country's infrastructure, and the new authorities hope to use the lifting of Western sanctions to attract investments and fuel reconstruction efforts. Qutaiba Badawi, head of the General Authority for Land and Sea Ports, said the parties were "not merely signing a technical agreement, but we are laying the foundation for a new phase of field and maritime work in Syria, repositioning ourselves on the regional and international economic map". In May, Damascus signed a 30-year contract with French shipping giant CMA CGM to develop and run the port of Latakia. That same month, Syria signed a $7 billion energy deal with a consortium of Qatari, Turkish and US companies as part of efforts to revive its crippled power sector. Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
5 hours ago
- Al-Ahram Weekly
Syria signs $800 mn port deal with UAE-based company: State media - Markets & Companies
Syria signed a $800 million deal with UAE-based company DP World on Sunday to develop the port of Tartus, state media reported, as the new authorities continue their efforts to support post-war reconstruction. Following the toppling of longtime Syrian ruler Bashar al-Assad in December, the new Islamist authorities have worked to reconnect the country to global companies and kickstart reconstruction after 14 years of civil war. "In the presence of President Ahmed Al-Sharaa, an agreement was signed between the General Authority for Land and Sea Ports and DP World, valued at $800 million, as a strategic step aimed at enhancing port infrastructure and logistics services in Syria," state-run news agency SANA said. Following the signing of the deal, DP World CEO Sultan Bin Sulayem said Syria's economy had "significant assets, including the Port of Tartus, which represents an opportunity to transport and export many Syrian industries". In a statement also shared by state media, he pledged to make Tartus "one of the best ports in the world". DP World operates dozens of marine and inland ports and terminals globally, particularly in Asia, Africa and Europe The Syrian civil war devastated the country's infrastructure, and the new authorities hope to use the lifting of Western sanctions to attract investments and fuel reconstruction efforts. Qutaiba Badawi, head of the General Authority for Land and Sea Ports, said the parties were "not merely signing a technical agreement, but we are laying the foundation for a new phase of field and maritime work in Syria, repositioning ourselves on the regional and international economic map". In May, Damascus signed a 30-year contract with French shipping giant CMA CGM to develop and run the port of Latakia. That same month, Syria signed a $7 billion energy deal with a consortium of Qatari, Turkish and US companies as part of efforts to revive its crippled power sector. Follow us on: Facebook Instagram Whatsapp Short link:
