US Bankruptcies Hit Highest Level Since COVID [View all]

Source: Newsweek

Published Aug 21, 2025 at 7:28 AM EDT


The U.S. saw a sharp increase in corporate bankruptcy filings in July, according to a recent report, reaching a post-COVID peak and placing 2025 on track to surpass last year's total.

S&P Global Market Intelligence, the research and data arm of the credit-rating agency, found that filings by large public and private companies rose to 71 last month from 66 in June, marking the highest monthly tally since July 2020. So far in 2025, meanwhile, the total of 446 bankruptcy filings is the highest for this seven-month stretch since 2010.

Why It Matters

Experts told Newsweek that, when factoring in things like currency depreciation and corporate structures, statistics such as these are less alarming than they may initially appear. However, the notable increase in both business and personal bankruptcies in recent months has exacerbated existing concerns about the overall health of the U.S. economy.

In its report, S&P Global cited the impact of high interest rates and "uncertainty" created by tariffs; but the economy is also grappling with elevated inflation, a precarious labor market and other headwinds that have prompted some economists to warn of an impending recession.

Read more: https://www.newsweek.com/us-bankruptcies-highest-level-since-covid-2116819