According to the latest data in the US, the country's economy is slowing down. In view of this, the Fed Reserve may reduce interest rates by 25 basis points in the policy meeting to be held next week. America is the world's largest economy and the recession there can affect the whole world. According to the data, the earnings of 37 percent of small companies in the US have declined in the last three months. This is the highest since 2010. This did not happen even during the Corona period in the year 2020. Then there has been a quarterly decline in the earnings of 35 percent of small companies

Rising labor and material costs and falling sales have impacted corporate earnings. Recently, sales prospects for small companies fell to a four-year low. Small companies in the US are struggling as the country's economy goes through a recession. There are 33 million small companies in the US and they account for 44% of the country's economy. These companies employ 61.7 million people, which is 46.4% of the total private sector.

 

In the first eight months of the year, 452 big companies have gone bankrupt in the US. This is the second highest number in the last 14 years. In 2020, when the corona pandemic struck, 466 companies went bankrupt in the first eight months of the year, i.e. till August, due to the lockdown. This year, 63 companies went bankrupt in August, while 49 companies went bankrupt in July. August was the fourth worst month for American industry in the last four years.