Corporate Bankruptcies Spike as Consumer Confidence Collapses in the U.S.
A growing number of major U.S. companies are filing for bankruptcy in what analysts are calling the most severe wave of corporate distress in over a decade.
New data from S&P Global reveals that 246 large firms have already gone under in 2025 — a figure not seen since the 2008 financial crisis.
April alone saw nearly 60 bankruptcies, coinciding with intensified tariff pressures during the height of President Trump’s renewed trade disputes.
The industrial, consumer discretionary, and healthcare sectors have taken the hardest hits, with consumer-facing companies particularly vulnerable to volatile markets and persistent inflation.
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Financial commentator Adam Kobeissi noted the alarming pace of corporate collapse, pointing out that this year’s bankruptcy count has more than doubled compared to 2022.
At the same time, American households appear increasingly shaken. The latest consumer sentiment survey showed confidence levels nearing historic lows. The index fell to 52.2, surpassing even the bleak readings from the Great Recession and early 1980s.
Expectations for future conditions hit a 45-year low, reflecting widespread economic unease.
With inflation uncertainty lingering and trade tensions escalating, many observers now warn that 2025 could bring an even steeper rise in insolvencies — especially if consumer spending continues to retreat.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
