There has been a “historic surge” in corporate bankruptcies across the United States as businesses struggle under the pressure of Joe Biden’s failing economy.
According to a recent analysis from Standard & Poor’s, corporate bankrupticies reached their highest level since June 2020 at the height of the COVID pandemic.
The report explained:
June marked a historic surge in US corporate bankruptcy filings, with the highest number recorded in a single month since at least the start of 2020 and surpassing half-year figures seen in over a decade.
S&P Global Market Intelligence recorded 75 new corporate bankruptcy filings in June. The pace accelerated from the first months of 2024 and is rivaled by only the busiest months in 2020, when the shock from COVID-19 pushed a relatively higher number of companies into bankruptcy. The 346 total filings so far in 2024 is also higher than any comparable figure in the prior 13 years.
High interest rates, supply chain issues and slowing consumer spending continue to weigh on struggling companies.
The bankruptcies affected a range of industries, most notably consumer discretionary, healthcare and information technology.
The comparison with the COVID era is particularly troubling given the enormous economic impact that it had on businesses.
While many companies managed to stay afloat with the help of government grants, thousands were also forced to permanently close due to lack of demand.
Such reports underline the growing economic problems facing America in the lead-up to November’s presidential election.
According to CNBC, economists and investors are increasingly concerned about the prospect of another recession amid a fall in the stock market and other disappointing economic data.
