Trade deficit widens to $127B

Americans’ stronger appetite for imported goods helped to lift the broadest measure of the U.S. trade deficit in the July-September quarter to its highest point since late 2008.

The current account trade deficit grew to $127.2 billion in the third quarter, a 3.3 percent increase from the second quarter, the Commerce Department reported Thursday.

It was the fifth straight quarterly increase. That could be viewed as a healing sign for the U.S. economy as Americans regain their appetite to spend.

Imports grew to $494.2 billion, up 1.7 percent from the April-June quarter. U.S. demand for consumer goods, including clothing, footwear and household appliances, was especially strong. So was demand for semiconductors.

Exports rose to $323.1 billion, posting a solid 2.2 percent gain. The falling dollar has made U.S. goods less expensive and more attractive to foreign buyers.

Foreign demand was especially strong for U.S.-made machinery, equipment and for airplanes, as well as for foods, feeds and beverages.

The current account is the broadest measure of foreign trade. It tracks the flow of goods and services as well as investments between the United States and other countries.

Meanwhile, housing starts rose slightly in November after two months of declines. Builders broke ground on a seasonally adjusted 555,000 units, a 3.9 percent rise from October, the Commerce Department said.

Despite the gain, housing starts are just 16 percent above the 477,000 unit pace from April 2009 — the lowest point on records dating back to 1959.

And they are 45 percent below the 1 million annual rate that analysts say is consistent with a healthy housing market.

“Home construction is starting to slowly — and I mean slowly — come back alive,”  said economist Joel Naroff of Naroff Economic Advisors.