manufacturer • In March of this year, the company’s 737 Max aircraft were grounded after a second fatal crash within five monthsThe long suspension of the Boeing 737 Max (MAX) is making waves throughout the US economy, hurting the US trade balance and clouding the future outlook of airlines, carriers and tens of thousands of their employees.A variety of companies – from General Electric, the only producer of a Max engine through a joint venture, to smaller parts suppliers – report that they have suffered financial damage or have had to postpone their earnings forecasts because of the delivery of the aircraft. Some US and foreign airlines are reducing airline routes, avoiding increasing capacity or hiring and promoting pilots because of the Max affair.Meanwhile, economists estimate that Boeing’s production cuts probably hit US GDP in the second quarter, warning that this negative impact could worsen if the aircraft maker fails to resume deliveries in the fourth quarter, as it hopes to do.One of the biggest employers
Boeing is the largest US industrial exporter and one of the largest private concerns in the US Max is its best-selling airplane, and more than $ 30 billion worth of such aircraft have not been used since regulators around the world ground the plane after a second fatal crash in March.Some airlines and officials expect the use of Max will not be renewed until next year. This may further erode American exports and durable goods orders at a time when some industrial manufacturers are already reporting higher costs and cutting output because of trade and trade barriers.This is already a significant part of the slowdown,” said Ward McCarthy, chief financial economist at Jefferies.US durable goods orders fell 1.3 percent in May from a month earlier, including a $ 2 billion drop in sales of civilian aircraft and spare parts, according to the Commerce Department last month. Of 2019 compared to the same period last year.Michael Frolley, chief US economist at JPMorgan Chase, said Boeing’s production cuts probably shaved a tenth of a percent of expected annual growth in the quarter. The consensus among analysts is that the economy will grow by 1.3% in the second quarter.