Trade Deficit Jumps 8% to $26.5 Billion in 3rd Quarter : Economy: Exports set a record, but the U.S. imported an all-time high of $137.3 billion in goods.

U.S. exports hit record levels in the third quarter, but Americans’ appetite for foreign goods grew even faster, pushing the nation’s merchandise trade deficit to $26.5 billion, the government reported Monday.

The Commerce Department said that the July-September deficit was 8% higher than the $24.6-billion shortfall recorded in the second quarter and 54% above the $17.2-billion trade gap for the first three months of this year. The overall deficit was the greatest since a $27.8-billion imbalance in the fourth quarter of 1990.

The Commerce Department report showed that imports rose to an all-time high of $137.3 billion in the third quarter, swamping U.S. exports of $110.8 billion, also a record.

The merchandise trade deficit, which represents the gap between U.S. exports and imports, includes manufactured goods and farm products but not weapons and other military hardware.

Economists hailed the rise in exports as a sign of increasing strength in the U.S. economy.

“The overall good news is that our exports are continuing to grow, with a particularly healthy growth to Latin America,” Boston economist David Wyss said. “In fact, we are growing faster in exports than other industrialized countries. Unfortunately, our demand for imports is increasing even more.”

The 3.1% increase in exports followed a decline of 0.4% in the April-June quarter.

The demand overseas for U.S. merchandise has been tempered in Europe and other markets by spreading economic weakness.

Consumer goods accounted for nearly all the increase in U.S. exports. Sales of manufactured goods and other non-farm items represented two-thirds of the gain, although farm sales also were up during the period. A strong increase in foreign demand for computer products and telephone equipment was offset somewhat by a sharp drop in sales of civilian aircraft.

Some economists predicted a downturn in U.S. exports in 1993. Robert Dieli, an economist at Northern Trust Co. in Chicago, said that demand for American goods in such countries as Japan and Germany has “been slowing down.”

Petroleum imports increased by $1.3 billion--a 10% rise--to $14.2 billion in the third quarter, as both prices and volume of shipments were up. Overall, the largest increases in imports came from China, other developing Far East countries and Japan.

In general, the report showed that last quarter’s trade deficit with developing countries expanded, while the shortfall with industrial nations, such as those in the European Community, contracted.

The trade gap with Canada, the nation’s largest trading partner, narrowed by $1.7 billion from second-quarter levels to $1.5 billion, while the deficit with Japan was unchanged at $11.7 billion.

Trade Balance U.S. merchandise trade balance (exports less imports) calculated on a balance of payments basis, excluding military sales. $26.54 billion deficit, (preliminary) Source: Commerce Department