US Bankruptcies Hit 15-Year High — Trouble Ahead for the Economy
Bankruptcies in the US are rising fast in 2025, and July’s numbers are the worst in years. Last month, 71 large companies went bankrupt — the highest since the 2020 pandemic crash.
The numbers have been climbing month after month: 66 in June and 64 in May. So far this year, 446 big companies have shut down — the most in 15 years. This is already higher than the total for all of 2021 (405) and 2022 (373), and the year isn’t over yet.
The hardest-hit industries are industrial companies with 70 bankruptcies and consumer goods businesses with 61 bankruptcies. These are sectors that keep many jobs and supply chains running, so their collapse can spread problems quickly.
Experts say bankruptcies can start a domino effect — when one company fails, it hurts suppliers, workers, and even other businesses in the same sector. The rise in bankruptcies shows that demand is slowing, loans are harder to get, and businesses are under stress.
If this continues, the US economy could slow down further, and job losses might increase.
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Impact:
* Could put pressure on the US dollar as investors fear a slowdown.
* Might push traders towards safe-haven assets like gold, Japanese yen, and Swiss franc.
