Group Says Industry’s Sales Will Rise in ’04

U.S. aerospace industry sales will rise in 2004 for the first time in three years, helped by higher military spending related to the fighting in Iraq, an industry group said.

The sales will increase $1 billion, or less than 1%, to $148.1 billion, said the Aerospace Industries Assn., a Washington-based group whose 81 members include Boeing Co., Lockheed Martin Corp. and competitors. Sales this year fell to $147.1 billion from $153.4 billion in 2002.

Congress approved a Defense Department budget of $369 billion for next year, a 4% increase. The greater military commitment helped push 2003 industry sales this year $8.7 billion above the group’s forecast.

The group forecasts a sales decline for commercial aircraft in 2004 of $1.7 billion, or 5% from this year, to $32 billion.

From Bloomberg News