US reported budget deficit of $23.2bn in December - Nomura

The US Treasury Department reported a budget deficit of $23.2bn in December, slightly narrower than December 2016 and below the CBO’s estimate of a $26bn deficit, notes the research team at Nomura.

Key Quotes

“December’s reading brings the fiscal year-to-date deficit to $225bn, a deficit increase of $209.8bn from a year ago. Receipts in December grew 2.1% y-o-y, while outlays inched up by 0.7%. We continue to expect a much larger deficit for FY 2018 as a result of the new tax legislation and likely increases in spending.”