U.S. corporate bankruptcies ticked down in May, as the pace of filings in 2022 continues to be the slowest in years, according to S&P Global Market Intelligence data.

There were 29 bankruptcy filings in May, a slight drop from 30 in April. There were 143 bankruptcies in 2022 as of May 31, which is the slowest start to the year since at least 2010.

Industrials lead filings

The industrials sector has the most bankruptcies in 2022, with 23 filings as of May 31. Announced bankruptcies in the sector in 2022 include companies in building products, air freight and logistics, and construction and engineering.

The consumer discretionary sector again had the second-highest number of bankruptcies as of May 31 with 20 filings.

Consumer spending has been strong as pandemic-weary shoppers spend more on services. Still, high inflation and rising interest rates pushed consumer confidence down in May, according to The Conference Board.

The global corporate default tally so far in 2022 remains at its lowest level since 2014, according to S&P Global Ratings. The sectors with the most defaults are consumer products and homebuilders, and real estate, with six and five, respectively.

Tightening financing conditions are making it harder and more expensive for companies to refinance or issue new debt, and additional defaults could be in store for companies with debt rated B and lower, Ratings said.

Editor's note: This Data Dispatch is updated on a regular basis and the last edition was published May 5.

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 assets or liabilities. Market Intelligence may remove companies from this list if it discovers that their total assets and liabilities do not meet the threshold requirement for inclusion.

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