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According to MoneyTransfers.com, finance, insurance, and real estate companies accounted for 30% of all bankruptcies filed in the first half of 2022. However, it’s important to note that the total number of bankruptcies is still relatively low.
Most US businesses are doing well despite the challenging economic conditions. So while the increase in bankruptcies within these industries are cause for concern, it’s not indicative of a widespread collapse in the industry.
Jonathan Merry, MoneyTransfers CEO, spoke about the data. He said:
The US economy is slowly but surely recovering from the pandemic, but some sectors are still struggling. The finance, insurance, and real estate industry has been under immense pressure in recent years. The pandemic has only made things worse, with many companies forced to close their doors for good. It’s no surprise that we see an increase in bankruptcies among these companies. But it’s important to remember that the total number of bankruptcies is still relatively low.
MoneyTransfers CEO, Jonathan Merry
Other Sector Performances
Sectors such as oil, mining, retail trade, and mining, experienced reduced bankruptcy filing. There is high consumption of gas products, and their prices have stabilized. This allows traders in these sectors to make profits.
The number of retail businesses filing for bankruptcy has decreased as consumers have shifted their spending to online retailers. This has been a trend even before the pandemic but has accelerated in recent months. Many brick-and-mortar retailers simply cannot compete with online retailers’ convenience and lower prices.
Gold is seen as a safe haven asset, and investors tend to buy it when they are worried about the economy. This has resulted in increased demand for gold and higher prices. This, in turn, has helped mining companies make more money and avoid bankruptcy.
Overall, the number of bankruptcies is still relatively low. However, the rising bankruptcies in finance, insurance, and real estate should be addressed. These companies make up a large part of the US economy, and a collapse in this industry would have far-reaching consequences. The good news is that other sectors are doing well, which should help to offset any losses in the three sectors.
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