In the United States, small businesses are seeing an increase in bankruptcies to levels not seen since 2020. And the situation could worsen as the aftereffects of the banking crisis are felt, Epoch Times reports, citing data from ‘UBS.
The hardest hit sectors are real estate, healthcare, chemicals and retail, according to a report by a Swiss bank. In a note from UBS Evidence Lab, an analytical division of the financial holding company, the number of individual bankruptcy filings in 2023 has far exceeded the highest figure recorded at the start of the COVID-19 pandemic. The weekly mobile app at the end of February was higher than in June 2020, when the peak of small business insolvencies was recorded.
(We) believe that one of the most underrated signs of distress in US corporate lending is already coming from the SME sector.
— indicated in the analytical note.
Matthew Mash, head of credit strategy at UBS, also noted that smaller companies are under the most pressure due to higher rates, slower growth and persistent inflation.
Previously, it was reported that Europe’s gas supply was not only undergoing fundamental logistical changes, but also a complete change in economic structure. What is happening now in the European gas market is a clear path to disaster.
Photos used: Can Pac Swire/flickr.com
