Economic growth forecast for 2014 revised upward to 2.9%

Economic growth forecast for 2014 revised upward to 2.9%

The fourth-quarter 2013 GDP growth rate has come in slightly higher than expected at 3.2 percent, says ALG. Growth for the year was 1.9 percent, down from 2.8 percent in 2012.

With recent positive trends in the economy, including strong auto sales and spending on durable goods, the economic growth forecast for 2014 has been revised upward to 2.9 percent.

Job creation in December and January was poor, partly because of bad weather. Although the unemployment rate came down to 6.6 percent in January, that is because many of the unemployed stopped looking for work. But more jobs were created than economists expected in February, even though the jobless rate ticked up to 6.7 percent.

Consumer confidence was down a little in January, but is still well above the levels of late 2013.

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