The US government posted a $57.88 billion (€43.73 billion) shortfall between receipts and outlays in November, exceeding its year-ago monthly budget gap, the Treasury Department said yesterday.
The deficit was slightly above analysts' expectations and suggested little recovery so far this fiscal year.
Wall Street had forecast a $55 billion shortfall for November and the Congressional Budget Office (CBO) had expected a $57 billion gap. The deficit was about $15 billion larger than in November 2003, when it was $42.97 billion.
In the first two months of the 2005 fiscal year, which began on October 1st, the cumulative budget deficit was about $3 billion larger than in the first two months of fiscal 2004.
"The [ fiscal] 2005 budget has shown no improvement from a year ago. However, continued growth in the economy, along with some budget restraint, should narrow the deficit this year," said Mr Steven Wood, Insight Economics chief economist.
Financial markets have grown weary of the huge US budget and current account deficits. The dollar has fallen to record lows against the euro and other currencies in recent weeks.
The year-end fiscal 2004 budget deficit was a record $412.28 billion. The previous year's gap of $377.14 billion had also been a record.
President Bush has pledged to halve the deficit in five years but early predictions by the CBO suggest the White House is not on track to achieve this.
Both receipts and outlays grew in November compared with the same month the year before. In the first two months of fiscal 2005, defence spending was higher than in the same year-ago period, as were health and agriculture outlays. Corporate income tax revenues rose slightly.
The CBO noted there were two more working days in November this year than in 2003, which helped boost revenues.
Meanwhile, the mood of US consumers brightened in early December, which may bode well for retailers in the key holiday shopping season, a survey showed yesterday.
But in other reports, wholesale prices rose unexpectedly, spurred by rising energy costs.
The University of Michigan's December consumer sentiment survey rose to 95.7, its highest since August. Consumers were buoyed by falling gasoline prices, an improvement in the labour market and a brisk stock market rally. - (Reuters)
