Corporate bankruptcies in the United States have surged to levels comparable to the Great Recession, The Washington Post reports, citing data from S&P Global Market Intelligence. By December 2025, at least 717 companies had filed for bankruptcy protection.
This marks the highest level since 2010 and represents a 17% increase compared with the previous year. Analysts attribute the rise to persistent inflation, high interest rates and trade policies under President Donald Trump’s administration, which disrupted supply chains and pushed up operating costs.
The newspaper notes a sharp increase in so-called “mega-bankruptcies” during the first half of 2025 — cases involving companies with more than $1 billion in assets. Between January and June, 17 such filings were recorded, the highest number for a six-month period since the COVID-19 crisis in 2020.
The Great Recession of 2007–2008, triggered by the collapse of the US housing market, officially lasted in the United States from December 2007 to June 2009, with global effects extending in some countries until 2011.
According to World Bank data, GDP in advanced economies contracted by 3.4% during the crisis, while growth in developing economies slowed from 5.8% in 2008 to 2.8% in 2009. Russia’s GDP fell by 7.9% in 2009. Many countries never fully returned to their pre-crisis growth rates.
What distinguishes the current wave, WP notes, is the concentration of bankruptcies in industrial sectors. Manufacturing, construction and transportation companies have been hit hardest. Businesses focused on discretionary goods and services — such as fashion and home furnishings — rank second.
Weakening consumer sentiment is adding to the pressure. A University of Michigan survey showed that consumer confidence dropped by around 28% year-on-year in November, leading households to cut back on non-essential spending.
KPMG economist Martin Schoenberger said the surge in bankruptcies highlights economic uncertainty: “The economy looks strong on paper, but that strength is not evenly felt across all sectors.”
Despite these challenges, the US Department of Commerce reported that the American economy grew at an annualized rate of 4.3% in the third quarter of 2025.
