Following a spike in August, U.S. corporate bankruptcy filings eased a bit in September, but they remain on track to exceed last year’s total, according to new data from S&P Global Market Intelligence.
The rating agency reported that there were 59 bankruptcies among U.S. public and private companies last month, down from 63 the previous month.
Through the first nine months of the year, there have been 512 bankruptcy filings, up from last year’s 504 filings through the same period, and approaching the total for all of 2020 when there were 518 bankruptcy filings.
“Over the past decade, full-year bankruptcy filings were at their highest in 2020 and second-highest in 2023,” S&P said. “Bankruptcy filings this year continue to trend toward these levels amid ongoing inflation and higher interest rates.”
That said, the firm noted that financial conditions may ease in the months ahead, following the U.S. Federal Reserve Board’s interest rate cut in September, and continued evidence of cooling inflation, which could open the door to further easing.
The consumer discretionary sector has led the way in bankruptcies this year, with 81 filings through September. “The sector continues to be hit the hardest by increasingly budget-conscious consumers,” S&P said.
Along with the consumer sector, the industrial and healthcare sectors have also been leading sources of bankruptcy filings this year, it noted.