The United States is witnessing a surge in bankruptcies among small businesses that has exceeded levels not witnessed since 2020. A note from UBS, which was evaluated by The Epoch Times, indicates that the situation could potentially deteriorate as the ripple effects of the recent banking crises start to materialize.
According to UBS Evidence Lab’s report, private bankruptcy filings in 2023 have surpassed the peak recorded during the initial stages of the COVID pandemic by a significant margin.
The average of private filings over a four-week period in late February was 73 percent higher than in June 2020, as reported by Zero Hedge.
The report by UBS reveals that industries such as real estate, healthcare, chemicals, and retail outlets have been severely affected by the surge in bankruptcies.
The tightening of monetary policy by the Federal Reserve to counter inflationary pressures has been a significant contributor to the increase in bankruptcies. Additionally, the fear of a credit crunch has exacerbated the rise in defaults.
This tightening of credit conditions is impacting both large businesses and individual borrowers, with everyone feeling the effects.
Written by staff