Downside Risk to the Economy Arising from Overseas Developments

「The global economy may face downward pressure from deteriorating corporate earnings and weaker personal consumption due to rising resource prices against the backdrop of instability in the Middle East, supply chain disruptions, and restraints on corporate activity and capital investment as uncertainty about the outlook increases. The impact on the Japanese economy therefore requires close attention.」

「However, Japan's economic outlook is uncertain due to the subsequent escalation of tensions in the Middle East. In the business environment surrounding the construction industry, rising energy prices and other factors could squeeze customers' earnings and lead to restrained capital investment. Supply-chain disruptions could also delay capital investment or require plans to be revised, and we will continue to closely monitor their impact on our business.」

「The global economy may face downward pressure from weaker personal consumption due to rising prices against the backdrop of heightened tensions in the Middle East, prolonged supply chain disruptions, and restraints on corporate activity and capital investment as uncertainty about the outlook increases. The impact on the Japanese economy therefore requires close attention.」

「The global economy is also expected to come under downward pressure from US tariff policies, including their impact on the economies of various countries, uncertainty about the outlook for policy and instability in financial markets. Continued close attention is necessary regarding the impact on the Japanese economy.」

「During the current consolidated fiscal year, the Japanese economy was affected by downward pressure from US tariff policies. In the household sector, although wage increases agreed in this year's spring labor negotiations were high, growth in bonuses in the second half of the fiscal year and regular wages next fiscal year is expected to slow and remain low. In the corporate sector, exports are expected to decline for the time being due to deterioration in the US and Chinese economies caused by higher US tariffs. Although software investment is expected to continue increasing, uncertainty over US tariffs remains high and machinery investment in the manufacturing sector is showing weakness.」

「However, the global economy is being affected by the possibility of a slowdown caused by higher prices and monetary tightening in Europe and the US, instability in overseas conditions such as resource-price trends and foreign exchange fluctuations, and slower recovery in overseas economies. The impact on the Japanese economy therefore requires continued close attention.」

「However, the global economy is being affected by the possibility of a slowdown caused by higher prices and monetary tightening in Europe and the US, instability in overseas conditions such as resource-price trends and foreign exchange fluctuations, and slower recovery in overseas economies. The impact on the Japanese economy therefore requires continued close attention.」

「However, the global economy is being affected by instability in overseas conditions, including a slowdown caused by higher prices and monetary tightening in Europe and the US, the prolonged situation in Ukraine, resource-price trends and foreign exchange fluctuations, as well as slower recovery in overseas economies. The impact on the Japanese economy therefore requires continued close attention.」

「However, the global economy is slowing because of the impact of higher prices and monetary tightening in Europe and the US, while the prolonged situation in Ukraine, resource-price trends and foreign exchange fluctuations represent uncertain risks. Accordingly, the impact on the Japanese economy requires continued close attention.」

「However, the outlook for the economy remains uncertain amid a stronger tendency toward frugality because of higher prices, slower export growth associated with a slowing global economy, geopolitical risks arising from the prolonged situation in Ukraine, soaring raw-material prices, measures to address the weak yen, and continued global monetary tightening.」

「During the second quarter of the current cumulative consolidated period, conditions in Japan gradually eased from the difficult situation caused by the spread of COVID-19, and signs of a recovery centered on personal consumption emerged. However, exports, in particular, showed signs of stagnation because of the seventh wave of COVID-19 and the deterioration in the global economy. In addition, the outlook for the economy is uncertain because of geopolitical risks arising from the situation in Ukraine, soaring raw-material prices and the rapid depreciation of the yen. While continuing measures against COVID-19, close attention must be paid to the risk of a downturn in social and economic activity.」

「During the first quarter of the current cumulative consolidated period, conditions in Japan gradually eased from the difficult situation caused by the spread of COVID-19, and signs of a recovery centered on personal consumption emerged. However, infections have begun to spread again because of a new variant, and the situation remains unpredictable. In addition, the outlook for the economy is uncertain because of geopolitical risks arising from the situation in Ukraine, soaring raw-material prices and the rapid depreciation of the yen. While continuing measures against COVID-19, close attention must be paid to the increasing risk of a downturn in domestic and overseas social and economic activity.」

「However, the existence of risks arising from rapidly changing international conditions, rising energy and raw-material prices, and higher labor costs against a backdrop of structural issues such as an aging workforce and chronic labor shortages remains a source of concern for the construction industry, which is seeking to secure sound earnings and improve operational efficiency.」

「During the third quarter of the current cumulative consolidated period, the impact of COVID-19 gradually eased, sentiment related to personal consumption, including services and retail, improved, and the overall economy gradually recovered and entered a recovery trend. However, the inflow and rapid spread of a new variant raised concerns that it could impede the normalization of economic activity and the economic recovery.」

「During the second quarter of the current cumulative consolidated period, the Japanese economy remained affected by COVID-19. The delayed rollout of vaccinations and spread of the Delta variant have delayed the normalization of economic activity compared with Europe and the US.」

「While recovery is expected from the effects of various government policies and faster vaccination, close attention must continue to be paid to the increasing risk of a downturn in domestic and overseas social and economic activity as measures against COVID-19 continue, amid the emergence of variants and the holding of the Tokyo Olympics under various activity restrictions.」

「COVID-19, which has continued since last year, has yet to subside. Although the government is promoting comprehensive measures to prevent the spread of infection, the situation remains unpredictable because of the spread of variants and delays in vaccinations.」

「During the third quarter of the current cumulative consolidated period, the Japanese economy continued to be significantly affected by the spread of COVID-19. Although there were signs of a recovery, supported by the effects of various policies and improvements in overseas economies, the domestic economy remains in a difficult situation because the spread of infection in Japan and overseas poses a risk of a downturn. Attention must be paid to future developments in the pandemic and its impact on financial and capital markets.」

「During the second quarter of the current cumulative consolidated period, the Japanese economy remained under the impact of COVID-19. A rapid decline in inbound tourism demand, the nationwide spread of voluntary restrictions on activities, and the one-year postponement of the Tokyo Olympic and Paralympic Games raised concerns over a global economic downturn caused by stagnating economic activity, further increasing uncertainty about the outlook.」

「During the first quarter of the current cumulative consolidated period, the Japanese economy continued to be significantly affected by COVID-19 from the end of the previous period. To prevent the spread of infection, a state of emergency was declared on 7 April in 7 prefectures and expanded nationwide on 16 April. Although the state of emergency was lifted nationwide on 25 May, COVID-19 has not yet subsided, and the situation remains unpredictable as the country faces a potential second wave. The pandemic has forced domestic and overseas economic activity to stagnate, with tourism, services, food service and retail particularly hard hit in Japan.」

「Domestic and overseas economic conditions are expected to be significantly affected by when the COVID-19 pandemic subsides. The longer it takes to contain the pandemic, the greater the negative impact on the economy will be. In addition, uncertainty about the outlook is increasing because of multiple risks, including US-China trade disputes, trade negotiations between the UK and the EU, and geopolitical risks.」

「The global economic environment has become increasingly uncertain because of US-China trade friction and geopolitical risks in the Middle East, and the global economy will continue to require close monitoring. In addition, the COVID-19 outbreak that began in December 2019 has constrained economic activity in China, disrupting and slowing manufacturing supply chains, raising concerns that its effects could spread to the global economy as a whole.」

「In the construction industry, where our Group primarily operates, companies' willingness to invest in facilities has declined because of uncertainty in the domestic economy, and intensifying competition for orders has begun to emerge clearly. Chronic shortages of skilled workers have also become apparent, while various risk factors remain, including higher prices for equipment and materials and longer delivery times for structural steel and high-strength bolts. The operating environment therefore remains unpredictable.」

「Looking at the global economy, concerns remain over the potential negative impact on the global economy of a trend toward fully implementing protectionist economic policies, as well as geopolitical risks in the Middle East and Asia. Accordingly, uncertainty about the outlook cannot yet be dispelled.」

「In the global economy, concerns have emerged over the negative impact of US-China trade disputes on the global economy as a whole.」

「In the global economy, developments in trade disputes continue to create uncertainty about the outlook, and the situation requires close attention, including the outcome of the US midterm elections.」

「In the global economy, developments in trade disputes are creating uncertainty about the outlook, and uncertainty has been increasing.」

「Overseas conditions also contain various sources of uncertainty about the outlook. While further economic growth is expected in the US, there are concerns over the impact on the global economy of policy uncertainty, as well as economic and geopolitical risks in Europe, the Middle East and Asia. Resulting fluctuations in foreign exchange rates and resource prices could also have a significant impact on the domestic economy.」

「Overseas conditions also contain various sources of uncertainty about the outlook. While further economic growth is expected in the US, there are concerns over the impact on the global economy of policy uncertainty, as well as economic and geopolitical risks in Europe, the Middle East and Asia. Resulting fluctuations in foreign exchange rates and resource prices are also one factor that could have a significant impact on the domestic economy.」

「Overseas conditions also contain various sources of uncertainty about the outlook. While further economic growth is expected in the US, there are concerns over the impact on the global economy of policy uncertainty, as well as economic and geopolitical risks in Europe, the Middle East and Asia. Resulting fluctuations in foreign exchange rates and resource prices are also one factor that could have a significant impact on the domestic economy.」

「In the US, further economic growth is expected following the launch of a new administration, but concerns have emerged over the impact on the global economy if excessively protectionist policies are pursued. In addition, overseas conditions contain various sources of uncertainty about the outlook, including geopolitical risks in Europe, the Middle East and Asia, the UK's withdrawal from the EU, and the rise of anti-globalization sentiment in various countries. Resulting fluctuations in foreign exchange rates and resource prices are also one factor that could have a significant impact on the domestic economy.」

「With respect to overseas conditions, further economic growth is expected following the launch of a new US administration. However, concerns over a downturn have become apparent, including the potential impact on the global economy if excessively protectionist policies are pursued, geopolitical risks in Europe and the Middle East, and growing uncertainty about the outlook associated with the UK's withdrawal from the EU.」

「At the same time, concerns over a downturn driven by overseas conditions have become apparent, including stagnation in emerging Asian economies, geopolitical risks in Europe and the Middle East, and growing uncertainty about the outlook associated with the UK's withdrawal from the EU.」

「Concerns over a downturn driven by overseas conditions have become apparent, including stagnation in emerging and resource-rich economies such as China, geopolitical risks in Europe and the Middle East, and the UK's withdrawal from the EU.」