US budget deficit declined by over six percent from a year ago to $130 billion in May, reported the Treasury Department.
This was less than the $131 billion expected by analysts surveyed by Reuters. The deficit stood at $139 billion in May last year. The results in May bring the annual deficit to $436 billion as of today, down from $626 billion in the same period in 2013.
When adjusted for calendar differences, the US budget deficit would have been $87 billion, compared to a revised $106 billion deficit last year. Receipts stood at $200 billion, an increase of 1 percent from a year earlier, bringing the yearly total to $1.93 trillion, reported Reuters.
Outflows stood at $330 billion, a decline of 2 percent from 2013, bringing the annual total to date of $2.37 trillion. An official at the Treasury Department revealed that its normal for the government to experience difficulties in May since there were no significant taxes that are due for the month.
In a separate report, the Commerce Department, through its quarterly services survey, reported that outlays to the healthcare weren’t as high as the government had earlier estimated when it released its revised GDP growth estimate in April.
The government had earlier announced that the economy declined by 1.0 percent in the first quarter, a figure that now increases to more than 1.7 percent when data on healthcare spending is taken into account.
Ryan Sweet, a West Chester, Pennsylvania-based economist at Moody’s Analytics said that the new services spending figures may make the first quarter “look even worse”.
“Healthcare spending did not add nearly as much to growth as we initially thought in the first quarter,” he said. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at firstname.lastname@example.org