What is the impact of Boeing’s production of the 737 Max 8? U.S. GDP down 0.5%

With no hope of returning to flights at the end of this year, Boeing has announced that it will temporarily stop production of the 737 Max 8 aircraft, in the nine months of suspension Boeing has not stopped production, so the production but not delivered 737 Max 8 aircraft up to more than 400. Judging from the latest statements from important countries such as China and the United States, the Boeing 737 Max 8 aircraft to return to flight will take a lot of tests, originally expected to return to flight slate at the end of this year is no drama, early next year to resume flights is not easy, at least until February is not much hope.

What is the impact of Boeing's production of the 737 Max 8? U.S. GDP down 0.5%

The 737 MAX is Boeing’s most important and best-selling aircraft product, with annual sales of tens of billions of dollars, making it the largest U.S. manufacturing exporter and the largest component of the Dow Jones Industrial Average, and its shutdown could have far-reaching consequences for the U.S. economy.

The shutdown, while temporary, could still cause great trouble for Boeing and its suppliers and even affect the U.S. economy, as JPMorgan Recently released a report assessing the impact of the 737 Max 8 flight on U.S. GDP.

According to their report, the production of the 737 aircraft will affect U.S. Q1 GDP by 0.5 percent in the Q1 quarter, darkening the outlook for Q1 until the until the 1 percent growth rate is likely to be around 1 percent, rather than the 1.6 percent growth previously forecast.

At the same time, even if Boeing shut down its 737s, it still costs at least $1 billion a month to burn on them, a huge loss.

Add a Comment

Your email address will not be published. Required fields are marked *