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Highlights
The Treasury's deficit in July is $69.6 billion for the lowest July deficit since 2007. Calendar effects did move about $12 billion of spending into June and boosted receipts for July by about $6 billion but, even accounting for these effects, the results are better than the Econoday consensus for a $103.0 billion deficit.
Ten months into the fiscal year, the Treasury's deficit, at $973.8 billion, is 11.5 percent smaller than the prior year. Receipts are up 6.1 percent so far this fiscal year with corporate income taxes, at $182.4 billion, showing the largest gain at 29.8 percent. Individual income taxes, at $928.2 billion, are up 4.2 percent. In contrast, the outlay side shows little change with a only 0.4 percent decline. Defense spending, at $564.4 billion, shows the largest decline at 3.2 percent.
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Market Consensus before announcement
The U.S. Treasury monthly budget report showed a June deficit at $59.7 billion. Receipts were up while growth in spending was down, making for a 6.8 percent decline in the nation's deficit 9 months into government's fiscal year. When excluding special factors, such as calendar timings for government payments, the deficit was down 12.7 percent. Looking ahead, the month of July historically shows a deficit for the month. Over the past 10 years, the average deficit for the month of July has been $72.2 billion and $103.6 billion over the past 5 years. The July 2011 deficit came in at $129.4 billion.
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