US budget deficit narrows in August as customs revenues rise
The US Treasury Department announced a $35 billion decrease in the budget deficit in August, a 9% decrease compared to the same period the previous year, bringing the deficit to $345 billion.
This decline was driven by an increase in net customs revenues, which rose by approximately $22.5 billion last month, as a result of customs duties imposed on imports.
The data showed that US revenues rose by $38 billion, or 12%, in August to $344 billion, while expenditures increased slightly by $2 billion to $689 billion, representing new record levels for both monthly revenues and spending.
Despite the monthly decline, the deficit has increased by $76 billion, or 4%, since the beginning of the year, reaching $1.97 trillion so far.
In a related development, official data showed that the annual inflation rate in the United States rose to 2.9% in August, compared to 2.7% in July, supported by higher prices for goods and services.
On a monthly basis, inflation rose by 0.4%, exceeding market expectations of a mere 0.3% increase.
Regarding the labor market, US unemployment claims rose significantly last week, reaching their highest level in nearly four years.
Claims increased by 27,000 to 263,000 during the week ending September 6, further indicating weak momentum in the US labor market.
