tl;dr
Market analyst Adam Kobeissi reports that 246 large US companies have declared bankruptcy year-to-date, the highest in 15 years, with 59 filings in April alone during President Trump's trade war. Industrial, consumer discretionary, and healthcare sectors are most affected, with consumer discretionar...
A record 246 large US companies have filed for bankruptcy in 2024, marking the highest level in 15 years. This surge is driven by trade tensions, market volatility, and sector-specific challenges.
Consumer sentiment in the US has plummeted to near-historic lows, reflecting growing economic pessimism amidst rising bankruptcies and ongoing trade uncertainties. According to market analyst Adam Kobeissi, 246 large firms have declared bankruptcy year-to-date, with 59 filings in April alone during the height of President Trump's trade war.
The industrial, consumer discretionary, and healthcare sectors are the most affected, with consumer discretionary suffering the hardest due to volatility, tariffs, and inflation. Kobeissi warns of a potential surge in bankruptcies in 2025.
Consumer sentiment indices underscore this economic unease: the Consumer Sentiment index dropped to 52.2, the second-lowest reading ever recorded, even lower than during the 2008 financial crisis and the 1980s recession. Current conditions and consumer expectations similarly declined, with expectations hitting the lowest point in 45 years.
This period of the survey, conducted between April 22 and May 13, ended just days after the US-China trade deal, yet Americans remain deeply pessimistic about the economy’s future.