Trade deficit hits record in second quarter

? The deficit in the broadest measure of trade swelled in the second quarter to a record $130 billion, reflecting Americans’ hardy appetite for foreign-made cars and other goods.

The latest snapshot of trade activity reported by the Commerce Department Thursday shows that the mushrooming “current account” deficit in the April-June quarter surpassed the previous record of $112.5 billion set in the first three months of this year.

The current account deficit is considered the best measurement of a country’s international economic standing because it measures not just the goods and services reflected in the government’s monthly trade reports, but also investment flows between countries and unilateral transfers, including U.S. foreign aid payments.

The current account deficit grew more in the second quarter than many analysts were predicting. They were forecasting the deficit to widen to $126 billion.