US Budget: Reversal from the prior reading would not be unexpected - Nomura

The research team at Nomura notes that according to the US Treasury Dept’s monthly statement, the budget deficit for March grew to $176.2bn vs. $108.0bn one year earlier.

Key Quotes

“The widening deficit was driven by a simultaneous pickup in spending and slowdown in receipts. On a YTD basis, the current deficit in 2017 is 14.7% higher than 2016’s reading from the same time period. However, over the past 5 years, the monthly statement from the Treasury has reported a budget surplus in April following March’s deficit, due to a large increase in total receipts. In this regard, some reversal from the prior month’s reading would not be unexpected.”