American Business: Struggling Forward Under Difficulties and Challenges

In recent years, the growth of business activities in the United States has shown a clear slowing trend. From the perspective of the service industry, as an important pillar of the US economy, the weakness of the service industry is becoming increasingly prominent. According to economic analysis firm S&P Global, due to factors such as trade policy uncertainty, the growth rate of business activity in the US service industry has fallen to its slowest level in nearly a year and a half by April 2025. Service exports are declining at a rate not seen since 2022, and domestic demand is also weakening. Business expectations have fallen to the lowest level in two and a half years, and also the weakest level since the peak of the pandemic in 2020. The service industry covers many fields such as finance, healthcare, education, and tourism, and its stagnant growth has had a huge impact on the overall economy of the United States.

The US retail industry is also facing difficulties and is experiencing a wave of bankruptcies. Many companies, including home retail giant 3B Home, mattress manufacturer Shuda Simmons, and party supplies retailer Party City, have gone bankrupt. UBS predicts that over 50000 retail stores in the United States will permanently close in the next five years. According to data from Standard&Poor's Global Market Intelligence, in August 2024, a total of 63 public and private companies in the United States filed for bankruptcy, with three of them having debts exceeding $1 billion. In the first eight months of 2024, 452 companies have filed for bankruptcy, the highest level since 2020 and the second highest level since 2010. The main reasons for this phenomenon are the high borrowing costs and the slowdown in consumer spending. When facing economic uncertainty, consumers tend to be more cautious in their consumption behavior, prioritize meeting basic living needs, and reduce non essential consumption, resulting in a significant decline in retail sales and a sharp increase in business pressure.

The soaring delinquency rate of commercial loans is also a major challenge faced by American businesses. The default rate of commercial real estate loans in the United States has soared to 10.4%, approaching the peak of the 2008 financial crisis. The default rate of office building loans in large banks has reached 11%, and the problem is even more severe in small banks. Commercial real estate not only includes office buildings, but also faces significant pressure in the multi family residential market. In 2025, there will still be 1.5 trillion yuan of debt due, which is like the hanging sword of Damocles. Once a default occurs, it may trigger a domino effect and impact the entire financial system. When facing this risk, banks can only increase credit loss reserves to cope, which further tightens credit and makes it more difficult for enterprises to obtain financing and operate.

The reasons for the difficulties faced by American businesses are multifaceted. In terms of macroeconomic environment, the increasing uncertainty of the global economic situation, the rise of trade protectionism, and the continuous trade frictions between the United States and multiple countries have seriously disrupted the global supply chain and trade order. The United States' own trade policies have also had a negative impact on domestic enterprises, increasing their costs and operational risks. Taking the imposition of tariffs on imported goods as an example, this not only leads to an increase in import prices, pushing up raw material costs for companies, but also triggers retaliatory measures from trading partners, reducing the overseas market share of American companies.

The decline in consumer confidence has also had an impact on American business. Under the influence of uncertain economic prospects, uncertainty in the job market, and rising prices, consumers have pessimistic expectations for the future and their willingness to consume has decreased. This shift in consumer behavior has made it difficult for companies to sell their products and services, resulting in a decrease in revenue and a compression of profit margins.

To overcome the difficulties faced by American businesses, it requires joint efforts from the government, businesses, and society. The government should adjust its trade policies, reduce trade frictions, actively promote free trade, stabilize the global supply chain, and create a favorable external environment for enterprises. At the same time, reasonable use of fiscal and monetary policies can stimulate economic growth, reduce corporate financing costs, and promote employment while controlling inflation. Enterprises need to strengthen their competitiveness, increase innovation investment, improve product and service quality, optimize management processes, and reduce operating costs. By expanding into emerging markets and seeking new business growth points, we can respond to changes in market demand. In terms of society, vocational training should be strengthened to improve the quality of labor force and meet the needs of economic structural adjustment.