Market Review, January 2014

Publication Date: 

February 2014


In January, the advance estimate of U.S. fourth quarter real GDP showed 3.2% annualized growth. The results indicate a 2.7% growth rate in 2013, the strongest rate in three years. Consumer spending, the largest component of GDP, grew 3.3% in the fourth quarter, a significant increase from the 2% growth in consumer spending in the previous quarter. The report also showed the impact of the government shutdown on GDP, as government spending fell at a 4.9% rate. The reduction in government spending cut fourth quarter growth by 0.3%. Surprisingly, housing detracted 0.33% from GDP, as fixed residential investment came in at a 14-quarter low.