U.S. Economy Grew 3.5% in Third Quarter, Military Spending Jumps

The U.S. economy grew at a solid annual rate of 3.5 percent in the July-September quarter, propelled by solid gains in business investment, export sales and the biggest jump in military spending in five years. The Commerce Department says that the third quarter result followed a 4.6 percent rebound in the second quarter. The economy shrank at a 2.1 percent rate in the first three months of the year due to a harsh winter. The report was the first of three estimates of the gross domestic product, the economy's total output of goods and services. It is believed that the economy is maintaining momentum in the current quarter and consumer spending will be helped by a big fall in gas prices.