Japan Posts First Current Account Deficit in 17 Months as Dividend Payments Surge 
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Asian Stocks Mixed as Chip Selloff Hits KOSPI, Nikkei Ahead of US Jobs Data 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Bets 
BOJ Signals Faster Rate Hikes as Inflation Risks Raise September Move Odds 
China Trade Surplus Beats Forecasts in July as Exports Stay Strong 
Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist 
US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Fears 
The US federal government reported a monthly deficit of $64.4bn in August, modestly wider than CBO projections ($62bn) and $64bn narrower than in August 2014. A large portion of this decline, however, was due to the time shifting of payments, according to CBO analysis. Adjusting for these calendar effects, the monthly deficit would have narrowed just $4bn from the year prior. Receipts were up 8.5% y/y, driven almost entirely by growth in income and payroll taxes withheld from workers' paychecks. Spending was down 14.8% y/y on a reported basis, but up 4.3% on a CBO calendar-adjusted basis.
The growth in adjusted outlays was driven primarily by mandatory spending on entitlements. Spending on Medicaid, Medicare, and Social Security was up $10bn, while healthcare outlays related to the Affordable Care Act totaled $7bn. A $5bn decline in Department of Defense outlays helped to partially offset this spending growth.
The August data bring the 12-month rolling deficit to $424.2bn, down from $488.4bn last month. Next month's data for September will mark the close of FY 2014. We look for the annual budget deficit to have totaled $425bn, in line with the CBO estimate of $426bn.
