The US economy was surprising strong in the third quarter, growing at 3.5% against market expectations of 3.0%. The boost came from a £30 billion increase in defense spending which is the highest since 2008. The narrower trade deficit also made a contribution as imports fell and exports rose despite rising US dollar. The US stock market rose 0.25% to 1,986.45, edging closer back up towards the record highs of September.