GDP deflator

Real GDP Grows at A 2.6% Rate in 4th Quarter as Deflator Turns Negative

Friday’s report on our 4th quarter GDP was particularly interesting in that the inflation adjustments for large components of our national output turned negative, which meant that when the inflation adjustment was applied, what appeared to be lower or just modest increases in spending actually represented larger increases in goods and services procured, and hence indicated a larger contribution to our output than the nominal dollar amounts would lead one to believe.    The