Sluggish capital investment and lackluster personal consumption

「Companies are making progress in passing on higher costs and raising wages while addressing labor shortages, and capital investment remains firm.」

「During the interim consolidated fiscal period, Japan's economy showed a gradual recovery owing to improvements in corporate earnings and the employment and income environment. However, the effects of soaring raw material prices and inflation continued, and the outlook remained uncertain.」

「During the first 3 quarters of the consolidated fiscal year, Japan's economy was on a gradual recovery path as social and economic activity normalized. However, the outlook remained uncertain because of heightened geopolitical risks, including the situations in Ukraine and the Middle East, and prolonged inflation.」

「During the first quarter of the consolidated fiscal year, Japan's economy was moving toward normalization of social and economic activity following the reclassification of COVID-19 as a Class 5 infectious disease. However, the outlook remained uncertain because of soaring energy and raw material prices resulting from the prolonged situation in Ukraine and inflation caused by the weaker yen.」

「During the first nine months of the current fiscal year, Japan’s economy was moving toward normalization of socioeconomic activity as restrictions related to COVID-19 were eased. However, uncertainty about the outlook continued amid surging energy prices caused by the prolonged situation in Ukraine and rising prices due to the yen’s depreciation.」

「Although restrictions related to COVID-19 have been eased and socioeconomic activity is moving toward normalization, uncertainty about the outlook continues due to surging resource prices and supply chain disruptions caused by the prolonged situation in Ukraine, as well as the yen’s substantial depreciation.」

「During the first quarter of the consolidated fiscal year, Japan's economy showed signs of a recovery in some areas despite the continuing effects of COVID-19, but the outlook remained uncertain because of the weaker yen, soaring resource prices and supply chain disruptions.」

「During the first 3 quarters of the consolidated fiscal year, Japan's economy remained subject to restrictions on economic activity and weak personal consumption resulting from COVID-19. Although signs of a recovery emerged in some areas owing to the spread of vaccinations and other factors, the outlook remained uncertain because of the spread of new variants.」

「In the construction industry, capital investment is recovering, driven by resilient manufacturers of electronic devices, precision equipment and food-related products, and conditions are expected to remain firm going forward. At the same time, shortages of engineers and skilled workers and rising equipment, materials and labor costs continue.」

「During the first quarter of the consolidated fiscal year, Japan's economy remained affected by restrictions on economic activity and weak personal consumption resulting from COVID-19. Although signs of a recovery emerged in some areas, the outlook remained uncertain.」

「During the consolidated fiscal year, COVID-19 spread worldwide, significantly affecting people's lives and corporate activities, and the global economy slowed sharply. The Japanese economy also fell substantially below expectations in the first half, while showing signs of recovery in the second half. Business sentiment became clearly polarized, with manufacturers of electronic devices, precision equipment and food-related products remaining firm, and capital investment also recovering.」

「Economic activity gradually resumed after the lifting of the state of emergency in May 2020, and signs of a gradual recovery emerged. However, COVID-19 infections were beginning to spread again as winter approached, and the outlook remained highly uncertain, with the situation allowing no room for complacency.」

「During the cumulative first-quarter period, Japan’s economy remained in a difficult situation due to the stagnation of economic activity and a sharp deterioration in consumer sentiment caused by the spread of the novel coronavirus disease that began toward the end of the previous fiscal year, as well as voluntary restrictions on activities. Economic activity resumed and signs of recovery emerged after the government lifted its declaration of a state of emergency, but concerns about a second wave remained and the situation continued to be highly uncertain.」

「During the consolidated fiscal year, concerns about a slowdown in the global economy increased due to the prolonged US-China trade friction and the UK's withdrawal from the EU. However, supported by firm domestic demand, improvements in the employment and income environment progressed and a moderate economic recovery continued. Economic activity was subsequently constrained by the global spread of the novel coronavirus disease and the government’s declaration of a state of emergency, leaving the outlook highly uncertain.」

「During the cumulative third-quarter period, Japan’s economy remained weak, particularly in exports, although improvements in the employment and income environment progressed and a continued moderate recovery trend was expected.」

「Tensions over trade issues have cast a shadow over private-sector capital investment in manufacturing, while a slight sense of stagnation has also emerged in real estate-related investment, including redevelopment projects centered in urban areas, but」

「In the construction industry, the effects of US-China trade friction have cast a shadow over private-sector capital investment in manufacturing, while a slight sense of stagnation has also emerged in real estate-related investment, including redevelopment projects centered in urban areas, but」

「During the consolidated fiscal year, Japan’s economy progressed extremely slowly toward overcoming deflation, amid a decline in personal consumption caused by frequent natural disasters, slowing export growth and deteriorating sentiment due to the intensifying US-China trade war. Although a moderate recovery trend continued, supported by steady expansion in private-sector capital investment, a strong global economy and rising wages, the real economy remained difficult to feel in practice, and challenges remained.」

「Meanwhile, underlying consumer price trends have remained flat, and challenges remain in overcoming deflation and further realizing a virtuous cycle in the economy.」

「Corporate capital investment is increasing in the electrical machinery and transport equipment sectors of manufacturing, driven by the use of IoT and big data, environmental measures for automobiles, and advances in driver assistance systems. Meanwhile, underlying consumer price trends have remained flat, and challenges remain in overcoming deflation.」

「Although capital investment remained sluggish in manufacturing, construction investment in non-manufacturing sectors, including inbound tourism-related facilities, large-scale urban redevelopment and accommodation facilities, had a positive effect. However, personal consumption has remained depressed for an extended period, and the realization of the virtuous cycle in the economy targeted by the government remains unfinished.」

「In the construction industry, private-sector capital investment is expected to increase, but concerns remain, including surging materials and equipment prices, shortages of construction personnel and the resulting delays to construction schedules.」

「In the construction industry, private-sector capital investment is expected to increase, but concerns remain, including surging materials and equipment prices, shortages of construction personnel and the resulting delays to construction schedules.」

「Capital investment remained sluggish, while personal consumption also stagnated as food and other prices rose due to the weaker yen. The economy remained in a situation in which a recovery phase was difficult to discern.」