U.S. Q3 GDP Growth Fueled by 14.9% Surge in Defense Spending, Adding 0.85 Percentage Points

Oct 30, 2024, 03:01 PM

The U.S. economy experienced significant growth in the third quarter of 2024, with Gross Domestic Product (GDP) rising due to a notable increase in federal government spending, particularly in national defense. Public sector spending and investment contributed 0.85 percentage points to GDP growth, with national defense spending alone accounting for 0.51 percentage points. This surge in defense spending, which rose at an annualized rate of 14.9%, marks the largest increase in a single quarter since 2003. The rapid growth in defense expenditure has not been seen since the start of the Second Gulf War in 2003, highlighting a resurgence in military spending ahead of the November election.