US trade deficit shrinks further

City A.M. Reporter
THE US deficit is shrinking considerably more quickly than previously thought, the Congressional Budget Office said yesterday in a report that could sap Congress’ sense of urgency in finding further budget savings.

The non-partisan budget referee slashed its deficit forecast for the current fiscal year by $203bn (£133bn) from estimates made in February to $642bn – making it the smallest budget shortfall since 2008. The revisions are driven by rising tax revenue from individuals and contributions from state-run mortgage firms.