The economy posted a strong performance during the third quarter thanks to a boost in military spending and fewer imports, indicating the economy is on fairly firm grounds in a still shaky global financial environment.

The U.S. Commerce Department reported yesterday that the gross domestic product had grown at an annual rate of 3.5 percent from July through September, showing a broad improvement in the economy overall with a steady growth in business investment, according to a Wall Street Journal report.

The fact that the economy grew is especially important because global growth remains weak. In addition to the military spending, many cities and states are reporting better budget conditions.

While the economic growth pales in comparison to other postwar cycles, it is outperforming a lot of other advanced economiess.

The actual growth of the GDP once inflation is taken into account was 2.3 percent. Inflation figures have stayed constant in recent years despite roller coaster rides in quarterly data results.

Consumer spending, which makes up two-thirds of economic output in the United States, remained at the same pace it has been for a while now: up 2.3 percent from last year. If demand slows abroad, the economy will be relying on those consumers to boost spending habits, and the holiday shopping season in the midst of falling gas prices could be the trick. Still, income growth has been weak, and that could stunt some of that spending.

There are some concerns that the fourth quarter will be weak due to a stronger dollar and volatile defense spending.

However, the overall indication is that the residual effects of the financial crisis over the years has been fading, allowing the U.S. economy to start to flex its muscles again.