Challenging year ahead for defence industry
US aerospace and defence companies will continue to face challenges in the coming years despite the negotiated budget deal, industry representatives have suggested.
Under the budget deal, which was signed by Barack Obama on 26 December, automatic spending cuts will be eased as it allows expenditure to rise by $63 billion over scheduled levels in FY2014 and FY 2015.
Although the budget deal softens the short-term impact of sequestration it does not provide a long-term outlook for the industry. In addition, defence spending, now set at $498 billion, is still $30 billion below the requested budget with the FY2015 budget
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