[Android 4.2.1] Unable to use Gesture Keyboard

Android 4.2 users are unable to use gesture typing on signs. Normal typing works fine.

What I expected to happen was...:
I expected it to let me use gesture typing to type the word "Test."

What actually happened was...:
It instead inputted a space as though I had used the space bar.

Steps to Reproduce:
1. Attempt to place a sign somewhere.
2. Whimsically wave your finger across the keyboard and try to spell something.

Other info: I'm using a Nexus 4 with stock everything.