US corporate bankruptcies hit 14-year high

US corporate bankruptcies surged to their highest levels since the aftermath of the global financial crisis last year, driven by rising interest rates and weak consumer demand.

According to data from S&P Global Market Intelligence, at least 686 US companies filed for bankruptcy in 2024, an increase of nearly 8% compared to 2023, marking the highest annual level since 2010 when 828 companies filed for bankruptcy.

In contrast, bankruptcy filings totaled 777 cases in 2021 and 2022 combined, when borrowing costs were significantly lower due to the Federal Reserve’s interest rate cuts.

Gregory Daco, Chief Economist at EY, told the Financial Times that the continued rise in the cost of goods and services is impacting consumer demand. However, pressure on both businesses and consumers has somewhat eased with the Fed starting to reduce interest rates.