The debt limit compromise could spell trouble for defense contractors. The nine biggest contractors make more than 70 percent of their revenue from the federal government. Now spending in that industry is being slashed by as much as a third, Bloomberg reports.

European contractors who are facing stagnating markets at home are also trying to win government contracts.

For defense contractor ManTech, the debt limit could mean smaller growth after a decade of steady double-digit gains. They’ve already seen their stocks fall by more than 50 cents.

This story is part of Federal News Radio’s daily DoD Report. For more defense news, click here.

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