Pentagon report sees drop in cost of Lockheed F-35, other weapons

WASHINGTON, March 19 (Reuters) - The U.S. Defense Department's annual report on weapons programs projects a nearly two percent drop in the cost to buy 2,457 Lockheed Martin Corp F-35 fighter jets in coming decades, and a modest net decline in 79 major arms programs.

The projected cost to develop and buy the F-35, the Pentagon's largest single weapons program, dropped $7.5 billion to $391.1 billion, largely due to lower labor rates, revised inflation estimates and a cut in the number of spares needed, according to the report delivered to Congress on Thursday.

It estimated that 79 major U.S. weapons programs would cost $1.6 trillion, a decrease of $9.1 billion, or 0.6 percent, from last year's report, reflecting ongoing efforts to cut costs, improve oversight and keep programs on schedule. (Reporting by Andrea Shalal; Editing by Susan Heavey)