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Two Northrop Grumman MQ-4C Triton unmanned aerial vehicles are seen on the tarmac at a Northrop Grumman test facility in Palmdale, California in this U.S. Navy handout photo taken May 22, 2013. Northrop Grumman Corp , one of the largest U.S. weapons makers, reported higher second-quarter earnings on Wednesday and raised its forecast for the full year, despite Pentagon budget cuts.
Two Northrop Grumman MQ-4C Triton unmanned aerial vehicles are seen on the tarmac at a Northrop Grumman test facility in Palmdale, California in this U.S. Navy handout photo taken May 22, 2013. Northrop Grumman Corp , one of the largest U.S. weapons makers, reported higher second-quarter earnings on Wednesday and raised its forecast for the full year, despite Pentagon budget cuts.
(Chad Slattery/Handout/Reuters/Northrop Grumman)

FINANCIAL TIMES

Big defence contractors spared from U.S. spending cuts

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

Austerity is, in principle, a bad thing for the big weapons makers that serve the U.S. military. So far, though, austerity has mostly stayed at the level of principle.