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Photo: Smith Collection/Gado/Getty Images

Boeing's plan to suspend production of its 737 MAX jets in January is expected to hit Q1 GDP growth, assuming the suspension lasts through the first quarter and that suppliers slow production.

By the numbers: Wall Street firms estimate the suspension could shave off as much as 0.6 percentage points from Q1 GDP.

  • Per MarketWatch, economists “were penciling in a 1.3% annual growth rate for the first quarter before Boeing’s production plans were updated.”
  • The expectation is that 737 production will eventually resume, making the GDP impact temporary. The question is how long Americans will have to wait for a bounce back.

Catch up quick: Boeing announced on Monday that the company would halt production of its 737s while it grapples with the ongoing issues that caused two fatal crashes and prompted the jet’s worldwide grounding. The company reduced production of the aircraft from 52 per month to 42 in April.

  • Those prior production cuts have already eaten into economic growth.
  • What they’re saying: “By our estimation, the halt in deliveries of the 737 MAX last March and the cut in production last April ... together lowered real GDP about $10 billion below baseline," according to analysts at IHS Markits, who estimate Boeing’s production halt could lower Q1 growth by a half percentage point.

Between the lines: Decelerated business for suppliers and manufacturers has been an immediate concern.

  • Boeing says it will attempt to avoid completely disrupting supplier relationships, and the company may continue to accept parts while waiting to restart production.

Go deeper... Full list: All the countries that have suspended the Boeing 737 MAX

Go deeper

Dion Rabouin, author of Markets
47 mins ago - Economy & Business

Biden's inflation danger

Illustration: Sarah Grillo/Axios

President-elect Joe Biden's $1.9 trillion stimulus proposal has economists and bullish market analysts revising their U.S. growth expectations higher, predicting a reflation of the economy in 2021 and possibly more booming returns for risk assets.

Yes, but: Others are warning that what's expected to be reflation could actually show up as inflation, a much less welcome phenomenon.

Ina Fried, author of Login
3 hours ago - Technology

CES was largely irrelevant this year

Illustration: Sarah Grillo/Axios

Forced online by the pandemic and overshadowed by the attack on the Capitol, the 2021 edition of CES was mostly an afterthought as media's attention focused elsewhere.

Why it matters: The consumer electronics trade show is the cornerstone event for the Consumer Technology Association and Las Vegas has been the traditional early-January gathering place for the tech industry.

The FBI is tracing a digital trail to Capitol rioters

Illustration: Sarah Grillo

Capitol rioters, eager to share proof of their efforts with other extremists online, have so far left a digital footprint of at least 140,000 images that is making it easier for federal law enforcement officials to capture and arrest them.

The big picture: Law enforcement's use of digital tracing isn't new, and has long been at the center of fierce battles over privacy and civil liberties. The Capitol siege is opening a fresh front in that debate.