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.

Thompson 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.