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.