He was opening the show after being invited by Aldershot MP Sir Gerald Howarth during Prime Minister's Questions, on Thursday July 7.
The Prime Minister also used his appearance at the air show to announce a new strategic partnership between Boeing and the UK, as well as nearly £400m for new aerospace R&D projects.
However, the day was marred somewhat when heavy rains forced the site to be closed down early as flooding caused major disruption.
In his opening speech the Prime Minister talked about improving the country’s productivity levels and his belief that the UK should maintain a very close to the EU.
He said: “It’s great to be back here, because this is the right place to talk about the future for the British economy. Why? Because in the new situation we face, we are going to need to play to our strengths.
“And the British aerospace industry is clearly one of those greatest strengths.
"It’s the second biggest in the world, based on long-term investment, science, research and high skills, and its products and expertise exported across the globe.
“Indeed, every 2 seconds, a plane takes off or lands somewhere in the world whose wing design was tested right here at Farnborough . And by the end of the decade, if you board a large passenger plane, as often as not, it will be powered by a Rolls-Royce engine.
“That is the scale and success of British aerospace today.”
'Envy of the world'
He added the country should use the aerospace industry as inspiration to build an economy that is the envy of the world.
The Prime Minister said: "All I would say about the outcome is this: I believe it is in our fundamental national and economic interests to remain very close to the European Union, for trade, for business, for security, for cooperation. So let that be our goal.
"So the right relationship with Europe, higher productivity, more exports and inward investment – these are the things that we have to get right – and they will require a massive national effort.
"Looking at the aerospace industry – growing four times faster than the rest of our economy; with 90 per cent of its turnover made up of exports; and an exemplary relationship with government, academia and other industries – we can see just what can be delivered.
"So I would argue that we need to come together. We need to make the most of the cards in front of us. We need to build that strong, dynamic economy that really could be the envy of the world."