737 Max woes will continue to weigh on GDP growth

The grounding of the Boeing 737 Max aircraft delivered a hit to business equipment investment and net exports in the second quarter, reducing annualised GDP growth by 0.25% points. A similar hit to third quarter GDP is likely if production is cut further. The flipside is that once jets are approved for take-off and production is ramped up, either later this year or early next year, that will provide a lift to GDP growth.