The Year in Preview

An uncertain outlook for the U.S. economy mixes with continuing troubles in Asia to present challenges to most key industries heading into 1999. Here’s what Times reporters foresee for the industries they cover.

Aerospace and Defense: Faltering demand and uncertain jet orders in Asia will continue to rock Boeing and other companies in commercial aerospace. Big layoffs will hit Southern California and Seattle-area aircraft plants in 1999. Lawmakers are likely to increase Pentagon spending, which could help defense-heavy California. Industry consolidation will continue, with Northrop Grumman and smaller players involved in mergers and acquisitions in the U.S. Europe is consolidating its defense companies, and the coming year may also see mergers of European and U.S. companies.