Downside risk to earnings from rapid yen appreciation and global economic uncertainty

「However, exports showed signs of stagnation amid uncertainty surrounding U.S. trade policy, while consumer sentiment remains weak as prices continue to rise. In addition, concern remains over the prolonged stagnation of China's real estate market and the impact of the high-interest-rate environment in Europe and the United States, and the outlook for the global economy remains uncertain.」

「During the fiscal year, the Japanese economy remained on a gradual recovery track, supported by increased inbound demand and improvements in employment and income conditions. However, the outlook for the global economy remains uncertain and conditions continue to be unstable due to the impact of continued price increases on personal consumption, U.S. trade policy, stagnation in China's real estate market, and heightened geopolitical risks involving Russia and Ukraine and the Middle East.」

「During the interim consolidated fiscal period, the Japanese economy was on a gradual recovery track, with signs of recovery in personal consumption and capital investment and an improving employment environment. However, the outlook for the global economy remains uncertain due to the continuation of high interest rates in Europe and the United States, stagnation in China's real estate market, the future direction of the U.S. administration, and developments surrounding Ukraine and the Middle East.」

「During the fiscal year, the Japanese economy saw some stagnation in personal consumption due to the impact of rising prices, although capital investment showed signs of recovery. However, the outlook for the global economy remains uncertain and conditions continue to be unstable due to global monetary tightening, stagnation in China's real estate market and instability in the Middle East.」

「During the first nine months of the fiscal year, the Japanese economy was on a gradual recovery trend as socioeconomic activity normalized with the end of the COVID-19 pandemic, supported by a recovery in personal consumption and improved employment conditions. However, the outlook remains uncertain due to geopolitical risks, including the situations in Ukraine and the Middle East, and rising interest rates associated with global monetary tightening.」

「During the first six months of the fiscal year, the Japanese economy was gradually recovering as socioeconomic activity normalized with the end of the COVID-19 pandemic. However, rising interest rates resulting from aggressive monetary tightening in major countries have caused a sharp depreciation of the yen, while persistently high energy prices due to heightened geopolitical risks have caused prices to rise, leaving the outlook uncertain.」

「During the three-month period ended in the first quarter, the Japanese economy recovered moderately, led by domestic demand, as society transitioned to the post-COVID period, socioeconomic activity moved toward normalization, and inbound demand increased further due to yen depreciation. However, the global economic outlook remained uncertain, with higher prices and volatility in the financial and capital markets among the possible effects of the prolonged situation in Ukraine and higher interest rates resulting from monetary tightening, particularly in Europe and the United States.」

「However, the global economy remained uncertain and unstable, as corporate capital investment and personal consumption were restrained by higher raw material and energy prices resulting from the prolonged Russian invasion of Ukraine, as well as monetary tightening in Europe and the United States.」

「During the nine-month period ended in the third quarter, the economy was on a recovery trend due to various policies aimed at living with COVID-19. However, the outlook remained uncertain due to the renewed spread of COVID-19 toward year-end, higher raw material prices and yen depreciation.」

「During the six-month period ended in the second quarter, the Japanese economy was on a moderate recovery trend as restrictions on behavior were eased amid a decline in COVID-19 infections and socioeconomic activity was revitalized, led by personal consumption and inbound demand. However, downside risks remained due to rapid yen depreciation arising from the widening U.S.-Japan interest-rate differential and the impact of higher resource prices, and economic conditions remained challenging.」

「During the three-month period ended in the first quarter, COVID-19 infections rose again and the timing of the end of the pandemic remained uncertain, but the country sought to resume and revitalize socioeconomic activity without imposing new restrictions on behavior. In the global economy, economic sanctions against Russia were implemented following its invasion of Ukraine, while resource prices rose sharply, exchange rates fluctuated sharply and global inflation accelerated, leaving the outlook uncertain.」

「During the fiscal year, the Japanese economy remained challenging as economic activity was restricted intermittently due to COVID-19, while raw material prices and fuel costs rose sharply. In the global economy, downside risks increased and the outlook remained uncertain as resource prices rose due to economic sanctions against Russia and other measures following its invasion of Ukraine.」

「During the nine-month period ended in the third quarter, the economy showed signs of recovery following the lifting of the state of emergency. However, the timing of the end of the COVID-19 pandemic remained impossible to predict, including due to the emergence of new variants, and the situation continued to require close monitoring.」

「During the six-month period ended in the second quarter, the state of emergency was lifted and some personal consumption and exports showed signs of recovery. However, downside risks remained due to developments in infectious diseases in Japan and overseas and the impact of the supply chain crisis, requiring economic activity to be expanded in line with the COVID-19 infection situation. Economic conditions therefore remained challenging.」

「During the three-month period ended in the first quarter, personal consumption and corporate activity remained subject to certain significant restrictions because priority preventive measures and states of emergency were issued intermittently in response to COVID-19, and the outlook remained uncertain.」

「During the fiscal year, corporate earnings continued to decline substantially, particularly in the tourism, food service and transportation industries, due to requests to refrain from going out and suspend business operations following the issuance of two states of emergency in response to COVID-19. The number of infections was also increasing recently, and the outlook remained uncertain.」

「During the nine-month period ended in the third quarter, the Japanese economy remained challenging, with corporate earnings and capital investment declining due to the impact of COVID-19. However, while measures were being taken to prevent the spread of COVID-19, signs of recovery were also seen due to increased exports and the effects of various policies.」

「Looking ahead, the economy is showing signs of recovery as economic activity resumes following the lifting of the state of emergency and overseas economies improve. However, continued attention is required regarding volatility in international financial markets and developments concerning COVID-19 in Japan and overseas.」

「During the three-month period ended in the first quarter, the Japanese economy entered an extremely severe phase, as personal consumption and corporate activity declined substantially due to requests to refrain from going out and suspend business operations in response to COVID-19. Economic activity resumed following the lifting of the state of emergency in early May, and signs of recovery emerged, but the timing of the end of the COVID-19 pandemic remained impossible to predict, and the outlook continued to be uncertain.」

「The outlook for the economy became increasingly clouded due to the impact on international affairs of developments in U.S.-China trade friction and the serious impact of the spread of COVID-19 on the global economy since the beginning of the year.」

「The economic outlook remained uncertain due to the increasing risks in overseas affairs, including developments concerning U.S.-China trade issues, the outlook for the Chinese economy and Brexit, as well as the impact of volatility in the financial and capital markets.」

「Looking ahead, firm domestic demand, including a moderate increase in capital investment, is expected to support the economy, but attention is required regarding global economic developments, including the UK's Brexit issue, and the economic impact of a series of natural disasters since the previous fiscal year and the increase in the consumption tax rate.」

「The outlook for the economy remained uncertain because of concerns about downside risks to the global economy arising from the impact of developments in U.S.-China trade friction on international affairs.」

「The outlook remained uncertain because of concerns about downside risks to the global economy arising from the impact of developments in U.S.-China trade friction on international affairs. Looking ahead, the economy is expected to remain on a moderate recovery trend, as personal consumption continues to recover and capital investment shows signs of improvement against the backdrop of firm corporate earnings. However, uncertainty remains regarding the UK's Brexit negotiations and the outlook for the Chinese economy, requiring close attention to downside risks to economic activity.」

「During the nine-month period ended in the third quarter, the economy continued on a moderate recovery trend against the backdrop of improvements in corporate earnings and the employment and income environment resulting from the government's economic policies. However, the outlook remained uncertain, and attention was required regarding volatility in international financial markets caused by higher U.S. interest rates and the impact of trade issues on the global economy.」

「During the six-month period ended in the second quarter, the Japanese economy continued on a moderate recovery trend, supported by the effects of the government's economic policies, as corporate earnings and the employment and income environment remained firm, capital investment increased, and personal consumption recovered, although the impact of the widening U.S.-China trade friction and volatility in international financial markets required attention.」

「During the three-month period ended in the first quarter, the Japanese economy continued on a moderate recovery trend, with the employment and income environment remaining firm against the backdrop of improvements in personal consumption and capital investment. However, the outlook remained uncertain due to uncertainty in the global economy, including trade friction arising from U.S. trade issues, and the economic impact of the heavy rains in July 2018.」

「During the nine-month period ended in the third quarter, personal consumption and capital investment were on a moderate recovery trend due to improvements in the employment environment and corporate earnings, but the outlook remained uncertain due to uncertainty surrounding the political situation in Europe, the United States and Asian emerging economies.」

「During the six-month period ended in the second quarter, the Japanese economy continued on a moderate recovery trend, with corporate earnings recovering and the employment and income environment remaining firm against the backdrop of improvements in personal consumption and capital investment. However, the outlook remained uncertain due to potential risks including emerging-market economies and policies in Europe and the United States.」

「During the three-month period ended in the first quarter, the Japanese economy remained uncertain, despite improvements in corporate earnings and the employment and income environment against the backdrop of the government's economic policies, due to heightened uncertainty surrounding the global economy.」

「Looking ahead, corporate earnings and personal consumption are showing signs of recovery as the employment and income environment continues to improve and the government's economic policies take effect, and the economy is expected to recover moderately. However, concerns remain about U.S. policy developments and the outlook for Asian emerging economies, and the uncertain situation is expected to continue.」

「During the nine-month period ended in the third quarter, the Japanese economy continued on a moderate recovery trend, supported by the government's fiscal and monetary policies, but the outlook remained uncertain due to heightened uncertainty in overseas economies and other factors.」

「During the six-month period ended in the second quarter, the Japanese economy remained uncertain, as the recovery in capital investment stalled, personal consumption stagnated, and downside risks to domestic economic activity increased due to the slowdown in Asian emerging economies and elsewhere.」

「Against a backdrop of rapid yen appreciation and volatile stock prices amid heightened uncertainty across the global economy, the improvement in corporate earnings and personal consumption remained stalled, and the outlook continued to be uncertain.」