in ,

Moody’s: Commercial Aircraft Demand to Offset Tight US Defense Spending

Moody's: Commercial Aircraft Demand to Offset Tight US Defense Spending - top government contractors - best government contracting event
https://executivebiz-media.s3.amazonaws.com/2022/08/19/30/9f/c3/a0/b7/6f/d4/64/Executive-Biz.png

AirplaneMoody’s Investors Service has forecasts that high demand for large commercial airplanes will continue to offset the impact of U.S. military spending cuts on defense contractors.

The credit rating agency has also offered a stable outlook for the aerospace and defense industry in the firm’s “Commercial Growth to Offset Tough, But Improving, Defense Environment” report, Moody’s said Wednesday.

Russell Solomon, a Moody’s senior vice president, said A&D sector profitability is projected to grow 2 percent to 4 percent over the next 12 or 18 months.

“The adverse effects of recent spending cuts will however be evident in the financial results of defense contractors for the next two years,” Solomon added.

He also noted in the report that improvements to airline profitability, gross domestic product and passenger traffic rates would back the large commercial aircraft demand in the coming years.

Moody’s also foresees up to 3 percent growth in commercial aircraft deliveries for 2016.

ExecutiveBiz Logo

Sign Up Now! ExecutiveBiz provides you with Daily Updates and News Briefings about Industry News

mm

Written by Mary-Louise Hoffman

is a writer of news summaries about executive-level business activity in the government contracting sector. Her reports for ExecutiveBiz are focused on trends and events that drive the GovCon industry to include commercial technologies that private companies are developing for federal government use. She contributes news content to ExecutiveBiz’s sister sites GovCon Wire and ExecutiveGov.

Visiongain: Cybersecurity Market to Hit $75B by 2015 - top government contractors - best government contracting event
Visiongain: Cybersecurity Market to Hit $75B by 2015
Research and Markets: SaaS Security Service Outpaces Traditional Network Security Software - top government contractors - best government contracting event
Research and Markets: SaaS Security Service Outpaces Traditional Network Security Software