U.S. federal budget deficit totals USD 107.7 billion in August

The U.S. federal budget deficit came in at USD 107.7 billion in August. Meanwhile, revenue growth seems to have bottomed out; however, spending growth continues to outpace it. The federal budget deficit came in slightly narrower than expectation, noted Wells Fargo in a research report.

Fiscal year to date, the federal budget deficit came in at USD 673.7 billion, with just one month left in fiscal year 2017. Usually, September month records a modes surplus due to quarterly tax payments. Thus, the full-year budget deficit for FY 2017 is expected to be a slightly smaller than the current USD 673.7 billion, stated Wells Fargo.

The rebounding corporate profit environment has helped stem the decline in corporate income tax receipts seen in the past couple years. Stable employment and wage growth has also aided in boosting federal tax receipts. The slower inflation in recent months has brought down net interest spending growth at the margin due of less spending on Treasury Inflation-Protected Securities.

At 20:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 35.8504. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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