Developments in the aerospace sector have continued todisappoint in recent months, such that value-added production isnow expected to post negligible global growth in 2014. Downsiderisks previously highlighted are materialising, with the slowdown inoutput in emerging markets most notably Russia intensifyingwhilst growth in US aerospace production undershootsexpectations and the anticipated pick-up across Europe stalls.Diverse geopolitical risks, increased competition on profitableroutes adversely affecting airline profitability and a large ordercancellation have together driven a more cautious short-term viewof prospects.
