A new Deloitte study forecasts the global aerospace and defense industry’s overall revenue to grow 2 percent in 2017.
Tom Captain, Deloitte global aerospace and defense leader, said Monday sales in the defense sub-sector could expand 3.2 percent this year after multi-year declines in revenue on growth in U.S. security spending and higher military expenditures in the Middle East, Japan, South Korea and India.
Deloitte’s 2017 global aerospace and defense sector outlook says commercial aircraft production could also increase due to stable global gross domestic product, strong airline passenger traffic and airline profitability driven by reduced fuel costs, the global consulting firm says.
Deloitte expects commercial aerospace will see a 0.3 percent revenue growth in 2017 despite a predicted increase of 96 additional large commercial aircraft due to airline operators’ product mix changes and pricing pressure, the study says.
This study comes nearly one month after credit rating agency Fitch Ratings issued its projections of 3-5 percent growth in the global addressable defense market through 2020.
