US corporate bankruptcy filings rise in October

U.S. business bankruptcies rose in October from the previous month, according to data from S&P Global Market Intelligence.

There were 37 bankruptcy filings in October, compared to 31 in September. As of October 31, 312 companies had filed for bankruptcy in 2022, fewer than any other comparable period dating back at least to 2010.

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According to S&P Global Market Intelligence, the tightening of financial conditions should lead to a further slowdown in economic growth and exacerbate anticipated recessions. A buoyant U.S. job market defies the Federal Reserve’s efforts to fight inflation with a series of aggressive interest rate hikes. The prospect of a divided government in the United States after the midterm elections would hamper the response to a recession.

Manufacturers maintain their lead in depots

Industrials had the most filings for all sectors, with 49 so far in 2022 as of October 31.

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The consumer discretionary sector is the second highest number of filings for the year, with 46 at the end of October. Inflation and other macro concerns were expected to negatively impact holiday sales from e-commerce titan Inc. Meanwhile, overall retail sales failed to impress.

Shortage of larger deposits

October did not file for bankruptcy with more than $1 billion in reported liabilities, marking the second consecutive month without a larger deposit.

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* For retail-specific bankruptcy data, see the monthly retail market series.

Editor’s Note: This Data Dispatch is updated regularly. The latest edition was published on September 7.

Bankruptcy figures include public companies or private companies with public debt with a minimum of $2 million in assets or liabilities at the time of filing, in addition to private companies with at least $10 million in debt. assets or liabilities. Market Intelligence may remove companies from this list if it finds that their total assets and liabilities do not meet the threshold required for inclusion.

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