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

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 11:30 a.m. ET: 11,304,534 — Total deaths: 531,659 — Total recoveries — 6,111,195Map.
  2. U.S.: Total confirmed cases as of 11:30 a.m. ET: 2,841,124 — Total deaths: 129,689 — Total recoveries: 894,325 — Total tested: 34,858,427Map.
  3. States: Photos of America's pandemic July 4 ICU beds in Arizona hot spot near capacity.
  4. Public health: U.S. coronavirus infections hit record highs for 3 straight days.
  5. Politics: Trump extends PPP application deadlineNew Jersey gov. wants national face mask requirement
  6. World: Mexican leaders call for tighter border control as infections rise in U.S.
  7. Sports: 31 MLB players test positive as workouts resume.
  8. 1 📽 thing: Drive-in movie theaters are making a comeback.
3 hours ago - Sports

Sports return stalked by coronavirus

Tampa Bay Rays left fielder Austin Meadows bumps elbows Friday during a workout at Tropicana Field. Photo: Kim Klement/USA Today Sports via Reuters

When MLB teams arrived at the ballpark this weekend for the first summer workouts of 2020, the comforting sounds of baseball brought smiles to players' faces.

Between the lines: Even the loudest crack of the bat couldn't mask the eerie silence or distract from the ever-present coronavirus threat.

4 hours ago - Health

239 scientists call on WHO to recognize coronavirus as airborne

People walk at the boardwalk in Venice Beach. Photo: Apu Gomes/AFP via Getty Images

A group of 239 scientists in 32 countries is calling for the World Health Organization to revise its recommendations to account for airborne transmission as a significant factor in how the coronavirus spreads, the New York Times reports.

The big picture: The WHO has said the virus mainly spreads via large respiratory droplets that fall to the ground once they've been discharged in coughs and sneezes. But the scientists say evidence shows the virus can spread from smaller particles that linger in air indoors.