U.S. Budget moves back into deficit in July
Contrasting June’s $27.0bn budget surplus, July has recorded a deficit of $291.1bn, which is up from $243.7bn a year ago. Outlays bounced by 9.7% yr/yr after a 7.0% decline in June while receipts rose by only 2.5% yr/yr w3hixch is the weakest since October 2024, and down from a 12.9% rise in June.
Receipts showed a 5.5% yr/yr decline in individual income taxes. Customs duties continued to rise, to $27.7bn in July from $26.6bn in June and $7.1bn a year ago, but still make up only 8.2% of receipts.
Spending data showed a strong bounce in Medicare after a weak June which was related to calendar effects. Interest on the debt was a record $92.0bn in July and 14.6% of outlays.
In the fiscal year to date receipts are up by 6.4% and spending is up by 6.7% with the 12-month total fir the deficit fairly stable around $2 trillion.