DECEMBER 2025 INDUSTRY NEWS AND TRENDS
The impact of payment cycles on cash flow
The way an organization pays invoices can impact vendor relationships, visibility into cash flow, and working capital strategy. Data from the APQC (American Productivity & Quality Center) show wide variation in the way organizations manage the payment cycle, from 12 days to payment for organizations at or below the 25th percentile to 24 days for those at or above the 75th percentile. However, lengthy payment cycles may not always indicate inefficient or disorganized payment processes. Some companies may be delaying payment in order to preserve liquidity. Ultimately, tracking invoice-to-payment cycle time and making intentional choices can improve cash flow strategy.
Holiday spending indicates shaky consumer confidence
Gallup’s Economic Confidence Index (ECI) indicates that economic confidence is low as we enter the holiday season, with the economy and jobs being chief concerns among U.S. consumers. The ECI fell to a 17-month low in November, with 40% of U.S. adults now rating economic conditions as poor and 63% saying it’s a bad time to find a quality job.
Concerned consumers have cut this year’s holiday gift budgets by nearly 23% compared to last year’s, representing a midseason decline that surpasses the one seen during the 2008 global financial crisis.
U.S. business bankruptcy filings are on the rise
Data from the Administrative Office of the U.S. Courts shows that business bankruptcy filings rose 5.6% in the 12 months ending September 2025 compared to the previous year. While these figures remain below historical highs, they are viewed as a sign of financial strain and evidence of risky lending practices in the U.S. Economists cite economic headwinds, including inflation, tariffs, and tight lending conditions, as the main drivers of higher bankruptcy rates.
