US bankruptcies surge 18% but remain below pre-pandemic levels

End of pandemic stimulus

James Baxter-Derrington
clock • 1 min read

Total bankruptcies in the US rose 18% in 2023, as higher interest rates, an increased cost of funds and the end of pandemic stimulus began to take their toll.

According to data from Epiq AACER, total bankruptcies hit 445,186, up from 378,390 in 2022, although this remains significantly below 2019's figure of 757,816. Vice president of Epiq AACER Michael Hunter noted the increased momentum of bankruptcies, with a "significant number of commercial filers leading the expected increase and normalisation back to pre-pandemic bankruptcy volumes". US inflation falls to 3.1% in November Alongside rising rates and falling pandemic stimulus, Hunter cited "near historic levels of household debt" as a cause for the spiking bankruptcy rates. Comme...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Companies

Warren Buffett's annual letter to shareholders declares no 'meaningful' options outside the US

Warren Buffett's annual letter to shareholders declares no 'meaningful' options outside the US

Company’s size inhibits stock picking choices

Eve Maddock-Jones
clock 26 February 2024 • 2 min read
Jupiter fails to stem retail outflows but shares jump on surprise profit boost

Jupiter fails to stem retail outflows but shares jump on surprise profit boost

Goodwill impairment negates profit upside

James Baxter-Derrington
clock 22 February 2024 • 2 min read
Fidelity to merge Japan Smaller Companies fund with £450m Japan strategy

Fidelity to merge Japan Smaller Companies fund with £450m Japan strategy

‘Uneconomic to operate’

clock 21 February 2024 • 1 min read
Trustpilot