Boeing Says It May Halt 737 Max Production

And last month the Census Bureau said that orders of durable goods, which include commercial airplanes, were down 1.3 percent in May. It was the third time in four months that orders had dropped.

In a recent report, the chief United States economist for JPMorgan Chase, Michael Feroli, said the effects of the Max grounding could shave about one-tenth of a percentage point of gross domestic product in the quarter.

“The issues affecting Boeing’s 737 Max could begin impacting the economic dataflow,” he said.

Boeing’s announcement last week was the clearest indication to date of just how much the crashes and grounding will cost the company. The company had already announced an expected $1 billion in costs from production delays, and a $100 million fund for families and communities affected by those killed in the crashes.

“This is a defining moment for Boeing and we remain focused on our enduring values of safety, quality, and integrity in all that we do, as we work to safely return the 737 MAX to service,” Mr. Muilenburg said in a statement. “During these challenging times, teams across our enterprise continue to perform at a high level while delivering on commitments and capturing new opportunities driven by strong, long-term fundamentals.”

The Max was grounded after the crash of Ethiopian Airlines Flight 302 in March, which killed all 157 people aboard. In October, Lion Air Flight 610 crashed just minutes after taking off, killing 189. In both accidents, a new automated system malfunctioned, pushing the planes into nose dives.

Boeing has developed a software update for the plane, and is working with the Federal Aviation Administration and other global regulators to get the Max flying again.

“Boeing is a $100 billion revenue company who just saw a 35 percent decline in revenues, so there will be some impact on the economy,” Mr. Corridore said. “But even at its size, we don’t think Boeing’s troubles are likely to significantly hurt overall U.S. GDP.”