Surge in U.S. Corporate Bankruptcies Reaches Levels Not Seen Since 2008
December 29, 2025305 ViewsRead Time: 1 minutes
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The American economy in 2025 is experiencing an unprecedented rise in corporate bankruptcies, with figures not seen since the global financial crisis of 2008, as reported by S&P Global Market Intelligence.
As of November 2025, a total of 717 U.S. companies have sought bankruptcy protection, reflecting a 14% increase compared to the same timeframe in 2024. The industrial sector and non-essential consumer goods industries are particularly affected.
Analysts cite several interrelated factors for this trend:
New trade policies: The Trump administration's implementation of additional tariffs has disrupted supply chains and elevated production costs for companies reliant on imports.
Weak consumer demand: Ongoing inflation has constrained consumer spending power, adversely affecting businesses in non-essential goods.
Rising delinquent loans: The delinquency rate for corporate loans reached 1.16% in the third quarter of 2024, marking the highest level since the COVID-19 pandemic began. Consumer loans also saw a rise, hitting 2.73%, the highest in 12 years.
Job losses: The industrial sector alone has seen a loss of over 70,000 jobs in the year leading up to November 2025.
Experts warn that these trends signify increasing financial stress on small and medium-sized enterprises, raising alarms about potential economic stagnation and escalating unemployment in the near future.
As of November 2025, a total of 717 U.S. companies have sought bankruptcy protection, reflecting a 14% increase compared to the same timeframe in 2024. The industrial sector and non-essential consumer goods industries are particularly affected.
Analysts cite several interrelated factors for this trend:
New trade policies: The Trump administration's implementation of additional tariffs has disrupted supply chains and elevated production costs for companies reliant on imports.
Weak consumer demand: Ongoing inflation has constrained consumer spending power, adversely affecting businesses in non-essential goods.
Rising delinquent loans: The delinquency rate for corporate loans reached 1.16% in the third quarter of 2024, marking the highest level since the COVID-19 pandemic began. Consumer loans also saw a rise, hitting 2.73%, the highest in 12 years.
Job losses: The industrial sector alone has seen a loss of over 70,000 jobs in the year leading up to November 2025.
Experts warn that these trends signify increasing financial stress on small and medium-sized enterprises, raising alarms about potential economic stagnation and escalating unemployment in the near future.
