Sluggish personal consumption and uncertainty about the outlook due to overseas political and economic factors

「Although personal consumption is recovering as the income environment improves, real wages continue to decline due to higher prices, leaving the outlook for personal consumption uncertain. In addition, the US trade policy and the destabilization of Japan-China relations continue to require close monitoring.」

「At the household level, consumer sentiment has stalled due to stagnant real wages, and the outlook remains uncertain. In addition, uncertainty over the global economy has increased further due to the impact of economic policies under the new US administration and stagnation in China's real estate market, among other factors.」

「Despite accelerating increases in costs such as labor and raw materials, companies face difficulty raising selling prices in line with those cost increases. Although there has been gradual progress, the pace of passing costs through to prices remains unsatisfactory. At the household level, real wages temporarily increased after declining for an extended period, but consumer sentiment has stalled as households favor saving in response to higher prices, and the outlook remains uncertain.」

「Many companies continue to face a difficult operating environment because price increases have not kept pace with rising costs such as labor and raw materials. At the household level, consumer sentiment has been improving, but real wages continue to decline in the near term, requiring close monitoring of the outlook for personal consumption, and the outlook remains uncertain. In addition, continued attention is required to international developments, including the situation in the Middle East, the Chinese economy and monetary policies in various countries, which could affect future prices and foreign exchange markets.」

「Many companies continue to face a difficult operating environment because price increases have not kept pace with rising costs such as labor and raw materials. At the household level, real wages also continue to decline, raising concern over the outlook for personal consumption, and the outlook remains uncertain. In addition, the prolonged weakness of the Chinese economy has increased uncertainty over raw material prices and the real estate market, requiring close monitoring going forward.」

「The economy faced downside risks, including signs of stagnation in consumer sentiment in the near term due to the continued decline in real wages and the low proportion of businesses successfully passing higher costs through to prices, and aspects of the outlook remained uncertain.」

「Overall prices for goods and services continued to rise due to the effects of the yen's depreciation, wage increases and other factors, and the economy remained in an inflationary trend. At the same time, because goods and services prices have risen faster than wages, there is also a downside risk to consumption, and the situation continues to require close attention.」

「The situation continues to require close attention to numerous downside risks to the economy, including further increases in resource and energy prices resulting from the situation in Ukraine and the yen's depreciation, as well as volatility in financial and capital markets.」

「Although there were downside risks from higher prices for goods and services and rising resource prices against the backdrop of the yen's depreciation, personal consumption was gradually recovering due to progress in COVID-19 vaccinations and various government policies. Inbound demand also began to show signs of a full-fledged recovery, strengthening the recovery in economic activity.」

「However, an uncertain outlook continues due to the spread of COVID-19 variants, further increases in crude oil prices resulting from Russia's invasion of Ukraine, and inflation caused by an acceleration in the yen's depreciation due to the widening interest rate differential between Japan and the United States, among other factors.」

「Geopolitical risks from the spread of infections involving COVID-19 variants and Russia's invasion of Ukraine also became apparent, and an uncertain outlook continues.」

「Although there were signs of a recovery from the stagnation in economic activity caused by the spread of COVID-19, the economy remained in an uncertain environment due to the lingering effects of the recession and the emergence of COVID-19 variants, among other factors.」

「During the first 9 months of the current consolidated fiscal year, the Japanese economy remained in a difficult situation as the impact of the spread of COVID-19 continued for an extended period. With no clear prospect for when the situation will be brought under control, the economy remained in an uncertain environment amid downside risks in the near term.」

「The impact of the spread of COVID-19 has been prolonged, and difficult conditions continue. With no clear prospect for when the situation will be brought under control, the economy remained in an uncertain environment amid downside risks in the near term.」

「The impact of the spread of COVID-19 has been prolonged, and difficult conditions continue. With no clear prospect for when the situation will be brought under control, the economy remained in an uncertain environment amid downside risks in the near term.」

「The economy entered a period of sharp deceleration due to the October 2019 consumption tax increase, heightened uncertainty in overseas economies resulting from the US-China trade dispute and other factors, downside risks to domestic and overseas economies from the global spread of COVID-19, and the impact of volatility in financial and capital markets.」

「The economy entered a period of sharp deceleration due to the October 2019 consumption tax increase, heightened uncertainty in overseas economies resulting from the US-China trade dispute and other factors, downside risks to domestic and overseas economies from the global spread of COVID-19, and the impact of volatility in financial and capital markets.」

「The economy remained in an uncertain environment, reflecting the October 2019 consumption tax increase, heightened uncertainty in overseas economies due to the US-China trade dispute and other factors, downside risks to domestic and overseas economies from the global spread of COVID-19, and the impact of volatility in financial and capital markets.」

「The outlook remained uncertain due to the impact of developments in US-China trade issues on the global economy, downside risks to the Chinese economy, overseas economic developments including the UK's EU withdrawal issue, and the impact of volatility in financial markets.」

「While global economic growth has slowed rapidly and remained flat, investment is expected to weaken and economic activity to deteriorate further worldwide as sentiment worsens due to escalating US-China trade tensions and the risk of vulnerabilities in financial markets.」

「In the housing industry, which is closely related to the Group's business, according to the Ministry of Land, Infrastructure, Transport and Tourism, new housing starts for the cumulative period from July 2018 to June 2019 remained flat at 100.0% of the year-earlier period. Starts of subdivided detached houses increased to 105.0%, and subdivided condominium starts also increased to 109.1%, both compared with the year-earlier period, and remained firm. In the construction industry, including commercial facilities, conditions have also remained firm, supported by reconstruction-related projects following the Great East Japan Earthquake, seismic retrofitting of various infrastructure facilities under national resilience initiatives, and infrastructure development associated with the Tokyo Olympic and Paralympic Games.」

「Consumption has recovered, supported by improvements in the employment environment and wealth effects from rising share prices. Capital investment has remained firm, supported by the recovery in production, improving corporate earnings, and increased IT investment to address labor shortages. Overseas economies have generally continued to expand.」

「Consumption has recovered, supported by improvements in the employment environment and wealth effects from rising share prices. Capital investment has remained firm, supported by the recovery in production, improving corporate earnings, and increased IT investment to address labor shortages. Overseas economies have generally continued to expand.」

「The outlook remains uncertain due to slower growth in emerging-market economies, including China, weak economic conditions in resource-producing countries, the policies of the new US administration, instability in the European economy resulting from the UK's withdrawal from the European Union, and geopolitical risks related to North Korea and the Middle East.」

「Personal consumption has remained sluggish amid concerns about the future. In addition, the outlook remains uncertain due to the impact of political and economic risks in overseas countries.」