US Budget reviewed - Nomura

Analysts at Nomura explained the US Budget.

Key Quotes:

"The Federal Government ran a surplus of $106.5bn in April, broadly in line with market expectations (Consensus: $107.0bn), down 32.1% y-o-y. The surplus shrank on a year-over-year basis as receipts shrank by 7.1% while spending increased by 5.4% in April."

Fiscal year to date, the Federal Government has run a deficit of $354.6bn, up 25.4% from the prior fiscal year. We expect government expenditures to be a modest positive for growth in 2016."

"Q2 GDP tracking update: The relevant elements of the federal budget statement for April imply more federal government spending for GDP than we had assumed. As a result, we revised higher our Q2 GDP tracking estimate by one-tenth of a percent, to 1.8% from 1.7%."