US budget deficit for August came in at $214.1bn - Nomura

Sandeep Kanihama FXStreet Contributor

Analysts at Nomura note that the US budget deficit for August came in at $214.1bn, pushing fiscal-year-to-date (FYTD) deficit to $898.1bn, up $224.4bn wider than this time last year.

Key Quotes

“Spending so far has been higher than the previous fiscal year. Total FYTD spending was up 6.7% while FYTD receipts were up only 0.6%.”

“Firm increases for Medicare and veterans’ programs appear to have contributed to a pickup in spending in August.”

“In addition, net defense outlay jumped sharply in August following a sharp decline in July. While some mean-reversion appears likely in September, the net impact on GDP growth in Q3 appears positive.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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