US federal government defense spending saw a significant surge in the third quarter, with the fastest growth rate in over two decades.

Defense expenditures rose at an annualized rate of 14.9% from July to September, the highest increase since the onset of the Second Gulf War in 2003.

This rise in defense spending contributed to a 2.8% increase in gross domestic product (GDP) during the same period.

The increase in government spending is notable as the nation approaches the November elections, highlighting the impact of defense investments on economic performance.