Apparently the sequestration has resulted in a drop in global spending on arms.
http://world.time.com/2013/04/14/u-s-defense-cuts-leads-to-first-drop-in-global-arms-spending-in-15-years

But we shouldn’t worry too much about that:

One of Sipri’s most notable findings is that “in 2012, the U.S. share of world military spending went below 40% for the first time since the collapse of the Soviet Union” 24 years ago. Yet that still means that the U.S. accounts for four-tenths of all global military spending—and it is 69% higher than it was in 2001. “The U.S. is still a vast, vast military power,” Burton told TIME. “The others are playing catch up.”