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US July budget deficit hits $432 billion, highest since 2021

The deficit was driven by record July spending of $766 billion, and the shortfall comes as the fiscal year deficit rises to $1.799 trillion so far.

Reported · Written up by our desk · Economy

The US government reported a July budget deficit of $432 billion, the highest for any month since 2021, according to Forexlive. The figure compares with $291 billion in July 2023 and topped the consensus estimate of $346 billion.

Spending was the main driver, with government outlays reaching a record $766 billion for the month. Forexlive also noted that July totals can be affected by how pay periods fall, but the broader debt trajectory remains higher.

Through the first part of the fiscal year, the deficit stands at $1.799 trillion versus $1.629 trillion a year earlier. Tariff refunds contributed, with net customs receipts of $8.6 billion in July after $33.4 billion in refunds, Forexlive said, while also adding that tariffs are not closing the budget gap.

Against this backdrop, Forexlive said US solid 10-year notes were at the highest rate since the financial crisis. The outlet also reported gold was up $41 to $4,407 on the day.

Latest closeGold $4,467.10 ▲1.9%

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