A widely followed market analyst is sounding the alarm about the surging number of large US companies going bankrupt this year.
Citing data from S&P Global Market Intelligence, Adam Kobeissi, the founder and editor-in-chief of The Kobeissi Letter, tells his 898,600 followers on the social media platform X that 246 large US firms have gone bankrupt year-to-date, the highest number in 15 years.
[adinserter block="1"]According to Kobeissi, dozens of big companies filed for bankruptcy just last month amid the peak of President Trump’s trade war.
“[246] is up from 206 recorded last year and more than DOUBLE during the same period in 2022.
In April alone, the US saw 59 bankruptcy filings as tariffs ramped up.
So far this year, the industrials sector has seen 41 bankruptcies, followed by 31 in consumer discretionary, and 17 in healthcare.
According to S&P Global, consumer discretionary companies have been hit the hardest due to market volatility, tariffs, and inflation uncertainty.
We expect a surge in bankruptcies in 2025.”
The wave of bankruptcies appears to coincide with a decline in consumer sentiment.
Kobeissi says the data suggests that American consumers are becoming increasingly concerned about the economy.
“US consumer sentiment is getting even worse:
The Consumer Sentiment index declined 1.4 points, to 52.2, the second-lowest reading in the history of the survey.
This is even lower than 2008 and the 1980s recession.
Current conditions fell 2.2 points, to 57.6, the second-weakest level on record.
Concerningly, consumer expectations decreased 0.8 points, to 46.5, the lowest in 45 years.
This survey took place between April 22 and May 13, concluding 2 days after the US-China trade deal.
Americans have rarely been this pessimistic about the economy.”
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