by Calculated Risk on 6/11/2008 02:44:00 PM

From AP: Economic stimulus payments push May budget deficit to an all-time high of $165.9 billion.

The economic slowdown is definitely impacting receipts.

A key question is how much those stimulus checks are boosting consumer spending in May and June. According to the Fed's beige book, consumer spending was weak in May.

And yet the WSJ reported last week: Some Chains Posts Strong Sales Despite Gas Prices, Low Confidence

Retailers posted stronger-than-expected same-store sales for May [despite a] surge in gasoline prices and tumbling consumer confidence.

With the conflicting reports on consumer spending, the Census Bureau's retail sales for May might be interesting (to be released tomorrow).

It definitely appears the budget deficit will set a record this year - and this is the unified deficit - the General Fund deficit will be significantly worse (excludes the Social Security surplus).