Deal values plummeted in the aerospace and defence (A&D) industries in 2009, according to a report by PricewaterhouseCoopers.
The uncertain economic future saw large deals fall by nearly 62% in monetary terms leaving it at the lowest level for a decade.
Large deals are those valued at over $50m, with their 2009 total value finishing at just $7.9bn compared with $20.8bn in 2008.
The average value of these deals also fell sharply from $519m to $379m during 2009, a 27% decline.
Total A&D deal values fell to $10bn last year, a 54% decline from 2008, and a shocking 76% lower than the $41.6bn high of 2007.
A&D specialist at Pricewaterhouse Scott Thompson said that, during 2009, companies were cagey over the economic conditions and the future of defence spending, and were keen to hold on to capital.
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By GlobalDataThompson did say there were some positive signs towards the end of last year and he expects a rebound in 2010.
“Towards the end of 2009 we saw some positive economic signs, as well as a loosening of credit, which created more confidence among buyers. In 2010, I expect a rebound in large deal activity among the large corporate buyers,” he said.
