Attention | the number of corporate bankruptcy soared, thousands of companies struggling to maintain

The number of U. S. companies that filed for bankruptcy last month exceeded the highest level of the early 2020 pandemic, when the U. S. economy was hit hard by the pandemic. S & P Global Markets said in a report that bankruptcy filings this year to date exceed the same period in 2020 and higher than any comparable figures over the past 13 years. This year, our gx16 connector, ribbon cable and plastic reflectors sales declined.

 S & P Global Markets Financial Intelligence said: " High interest rates, supply chain problems and slowing consumer spending continue to put pressure on struggling companies." Meanwhile, 2023 is the worst year of corporate bankruptcies since the major financial crisis, and the total number of corporate bankruptcies in 2024 is expected to exceed last year.

 This is another sign of the economic impact of the Fed's aggressive move, with even Fed Chairman Jerome Powell noting that the labor market is increasingly showing signs of cooling.

 Famous companies entering bankruptcy proceedings include electric car maker Fisk Motors Co. The company filed for bankruptcy on June 17. S & P Global Markets Financial Intelligence noted that Fisker executives said in February that 2023 sales were affected by supplier delays, higher interest rates and a shortage of skilled labor.

 Meanwhile, thousands of other companies are barely holding on. An analysis by the Associated Press last month found that the number of "zombie" companies publicly traded worldwide has soared to nearly 7,000, or 2,000 in the United States alone. These companies piled up cheap debt and then suffered from soaring borrowing costs as the Fed raised interest rates to combat high inflation.

 The surge in bankruptcy filings comes with more warnings on the Street about the economy. Citigroup's research report last week said the Institute for Supply Management's services sentiment index suddenly turned negative, with its monthly employment report showing the unemployment rate rising to 4.1%. This increases the risk of a greater slowdown in the economy, prompting Citigroup research to expect the Fed to cut interest rates eight times from September, by 25 basis points each, until July 2025.