Stuart Hoffman

When Pittsburgh-based PNC Financial Services’ top economist looks forward to 2014, he is doing it with cautious optimism.

“We think we can sustain (good economic growth) for at least one more year and maybe for several beyond that,” said PNC Chief Economist Stuart Hoffman.

Hoffman thinks the economy will see GDP growth inching up and unemployment inching down. By the end of 2014 Hoffman is predicting GDP growth of 2.5 percent and an unemployment rate of about 6.5 percent. 

On the local employment front, new jobs in construction will lead the way.

The 2013 economy might have stumbled a bit coming out of the gate, but at least one local economist says it recovered well.

“As the year went on it gathered some momentum,” said PNC Chief Economist Stuart Hoffman.

The year began with “sequestration” which reduced government spending nearly across the board and made several tax law changes including a hike in the payroll tax from 4.2 percent to 6.2 percent, a phase out a some key tax exemptions, an increase to the so-called death tax, and an increase in the top marginal tax rate from 35 percent to 39.6 percent.