U.S. corporate bankruptcy filings will likely hit a post–financial crisis high this year, following a surge in November filings, according to new data from S&P Global Market Intelligence.
There were 69 companies that filed for bankruptcy last month, which marked the second highest monthly total in the past few years, S&P reported.
“Over the past five years, bankruptcy filings typically slowed in November,” it said. “This year’s spike contrasts with that trend, raising the year-to-date total to 634, nearly matching the full-year totals of 636 in 2023 and 638 in 2020.”
For the year overall, total bankruptcy filings are projected to reach their highest level since 2010. That year saw 828 total filings, which came in the aftermath of the financial crisis and subsequent recession.
“Bankruptcy filings have accelerated in 2024 as businesses face ongoing pressure from high interest rates, inflation and changing consumer spending patterns,” S&P said.
In November the consumer discretionary and consumer staples sectors accounted for 17 of the month’s bankruptcy filings, “as businesses with the most exposure to tighter consumer budgets continue to face the most economic pressure,” it said. It noted that the consumer, industrial and health-care sectors have accounted for about 44% of all bankruptcies filed so far this year.
Looking ahead, S&P noted that, while the U.S. Federal Reserve has begun easing monetary policy, the pace of rate cuts may slow in 2025 “amid challenges posed by persistent inflation and potential tariffs.”