Growth and uncertainty

Highs and lows in the aerospace and defense sectors

While the long-term outlook for airlines remains robust, recent record growth is likely to slow as the aerospace industry weathers a soft patch driven by a cyclical slowdown in Asia and other key emerging markets. Data from the February 2016 Singapore Air Show indicate softer orders and a slight increase in delivery deferrals. Nevertheless, general macroeconomic drivers are stable in the United States. Meanwhile, structural growth in the emerging markets is on a positive long-term trajectory as a growing middle class increases demand for air travel.