by Zach Bethune, Thomas Cooley and Peter Rupert
The BEA announced that real GDP increased at a saar of 2.6% for 2013 Q4 (advance estimate was 3.2% and the second estimate was 2.4%). The overall picture for the U.S. economy remains largely the same. The increase from the last estimate comes largely from personal consumption expenditures (PCE) and nonresidential fixed investment. Moreover, the increase in PCE was the largest increase since the end of 2010. The deceleration comes mainly from a decline in inventories, a bigger decrease in government spending and residential fixed investment.
Initial claims for unemployment fell to 311k, its lowest level since last Thanksgiving and the 4-week moving average hit 318k.