Budget deficit in U.S. narrowed 13 percent to $90.5 billion in August

The article gives a summary of the changes going on in the US economy currently. The tax revenue has helped to narrow the August budget deficit by 13% even thought it still remains high at $90.5 billion. However the Congressional Budget Office is still forecasting a $1.34 trillion deficit for the year, which would be the second largest on record. The US Treasury says that government revenue has climbed 13% compared with last year while government spending has increased by 2.2% yoy. The highest spending so far this year has been by the Defense Department, Social Security Administration and the Department of Health and Human Services. Even though the US economy started to recover in the second half of 2009, the growth in 2010 has been sluggish with unemployment, budget deficits and economic growth being the key macroeconomic factors which are lagging. As a result these topics will come under heavy fire as the November Congressional elections draw closer.