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For much of the year, businesses had lots of unsold items sitting in the back room, which worked against growth. This factor, also known as inventories, didn't hold growth back in the third quarter.
Businesses really cut back spending on new equipment, sales of which were down 2.7%. Although some experts debate whether the uncertainty of the election could be weighing down business spending, it's declined for four straight quarters. Many economists believe other factors, like a strong dollar and sluggish global economy, play bigger roles in the equipment cutback.
Solid growth numbers help clear the way for the Federal Reserve to raise interest rates at the end of this year. Sluggish growth, and a bad jobs report in May, held the Fed back from raising rates earlier this year, among other reasons. The Fed is expected to raise rates in December.