Treasury reports $1.09T deficit through July

The Treasury Department on Wednesday reported the nation has run a $1.099 trillion budget deficit through July. 

The deficit is about $70 billion less than last year's budget deficit at this point in the fiscal year. The reason is higher government revenues, the Treasury statement said. 

Total spending has increased this year from $2.921 trillion to $2.992 trillion, but receipts to the government are up from $1.753 trillion to $1.893 trillion. 

The latest figures on the budget deficit come after President Obama signed a debt-ceiling deal last week that imposes further spending cuts on the budget. A slowing economy, however, could cut down on government revenues.

Standard & Poor's on Friday announced it was downgrading the U.S. AAA credit rating, reflecting a lack of confidence that Washington can get its finances in order.