Favourable financial winds have again led to more revenue for Nova Scotia's PC government, resulting in a shrinking deficit and more over-budget spending.

But smaller population growth and the threat of a trade war with the United States could mean those winds might soon shift.

Finance Minister John Lohr released his government's December fiscal update on Friday, his first official public act since being sworn in to the new portfolio last week.

The update shows a forecasted deficit of $247.5 milli…