The US Treasury Department reported a $215bn budget surplus in April, lowering the fiscal-year-to-date budget deficit to $385bn, points out the research team at Nomura.
Key Quotes
“Part of the large surplus was related to calendar payment shifts. However, incoming receipts in April were larger than the CBO originally estimated in its April 2018 updated budget outlook, suggesting some upside risk to the FY18 budget deficit forecast. The receipt numbers for the May budget statement will likely provide additional information on the near-term deficit trajectory. In addition, the May numbers will provide an update on how quickly government spending has ramped up since the budget agreement earlier this year.”
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