Weekly Economic Update 04-10-26: Federal Debt; ISM Services Index; Durable Goods; Personal Income & Spending; PCE Inflation; and the Consumer Price Index

Federal spending continues grow much faster than revenue as deficit spending sets new records.

The views and opinions expressed in this post are solely those of the author and do not necessarily reflect the views of the Georgia Institute of Technology or the Georgia Board of Regents.

I enjoyed a great week of vacation at Hilton Head Island, SC, where I played some tennis, enjoyed some bike riding, and dined out at some fantastic restaurants. But I still found time to track and report on the economic data for the week! (FYI…that won’t be the case when I travel in June, but more on that when the time gets closer.)

But, before we get to any data, I thought I would provide an update on the federal debt. In February, the federal budget deficit jumped 225% to $308 billion.

That means that over the first five months of FY2026 (October through February), the budget deficit is $1 trilion. In five months, we spent $1 trillion more than we took in. That is the third-worst start to a fiscal year in our history.

To make matters worse, government receipts are up 11% year-over-year to a record $2.09 trillion. Think about that. We grew revenue 11% year-over-year, and STILL overspent by $1 trillion! We spent $3.1 trillion in five months. Net interest expense is up 7% year-over-year to a record $425 billion. Through February, net interest expense was higher than what we spent on the defense of the country. (Of course, once we get the March data, that may change given our expensive foray into Middle East politics.)

Deficit spending continues to be out of control. This simply can’t continue.