Uncertainty over the Economic Outlook Due to Yen Appreciation and Inventory Adjustments

「一方で、深刻化する人手不足に加え、エネルギー・原油価格の高止まりや物価上昇の継続、為替動向など、先行きについては依然として不透明な状況が続いております。」

「During the interim consolidated accounting period under review, Japan's economy remained on a moderate recovery trend overall, supported by improved employment and income conditions, although the effects of U.S. trade policy were evident in some areas, particularly the automotive industry. However, the outlook remained uncertain due to the increasingly severe labor shortage, persistently high energy and crude oil prices amid heightened tensions in the Middle East, and developments in the global economy against the backdrop of continued price increases resulting from these factors.」

「In addition to the increasingly serious labor shortage, the outlook remains uncertain due to global economic trends against the backdrop of persistently high energy and crude oil prices associated with heightened tensions in the Middle East and the resulting continued inflation.」

「During the fiscal year under review, Japan's economy remained on a moderate recovery trend, with personal consumption proving resilient against the backdrop of improved employment and income conditions. However, the outlook remained uncertain due to factors including uncertainty surrounding overseas conditions and the effects of foreign-exchange fluctuations.」

「In addition, structural challenges such as the “2025 problem” and the “2025 cliff” resulting from delays in promoting DX have become apparent. The outlook remained uncertain due to concerns at small and micro businesses about delays in passing on higher costs and U.S. tariff measures.」

「In 2024, the impact of COVID-19 eased and economic activity was on a recovery trend. However, the effects of the lumber shock and rising prices continued to pose challenges for the housing market and lifestyle-related sectors.」

「During the second quarter of the fiscal year under review, Japan's economy saw household income increase following the implementation of fixed-amount tax cuts totaling approximately ¥3.3 trillion. However, the outlook remained uncertain, as the stimulus effect on consumption was limited, higher energy costs affected households, and, despite progress on wage increases at small and micro businesses, the government was said to need to assess the effectiveness and efficiency of its policies from the perspective of EBPM (evidence-based policymaking).」

「During the first quarter of the fiscal year under review, Japan's economy saw an improvement in consumer sentiment against the backdrop of easing price increases and expectations for wage increases. However, the outlook remained uncertain, as higher interest rates raised concerns about increased borrowing costs.」

「During the fiscal year under review, Japan's economy showed signs of a pickup, and consumption continued to recover. However, the outlook remained uncertain due to multiple uncertainties, including China-related risks and the effects of U.S. restrictions on investment in China.」

「During the third quarter of the fiscal year under review, Japan's economy was expected to continue recovering despite high prices, supported by the normalization of economic activity, rising wages and accommodative fiscal and monetary policies. However, the outlook remained uncertain due to multiple uncertainties, including China-related risks and the effects of U.S. restrictions on investment in China.」

「During the second quarter of the fiscal year under review, Japan's economy was in a post-pandemic recovery phase and continued to grow, led by domestic demand. However, the outlook remained uncertain due to the global rise in prices, a slowdown in the global economy resulting from monetary tightening, and the increase in the annual inflation rate.」

「During the first quarter of the fiscal year under review, Japan's economy was in a recovery phase following the COVID-19 pandemic and was showing signs of a pickup led by domestic demand. However, the outlook remained uncertain due to the global rise in prices and a slowdown in the global economy resulting from monetary tightening.」

「During the fiscal year under review, Japan's economy showed signs of a recovery as the priority preventive measures related to the spread of COVID-19 were lifted in March 2022. However, the outlook remained uncertain, as higher raw material prices and supply constraints resulting from the situation in Ukraine and other factors posed downside risks.」

「During the third quarter of the fiscal year under review, Japan's economy saw a recovery in personal consumption, particularly in services such as dining out and accommodations, following the easing of activity restrictions related to COVID-19. However, the outlook remained uncertain, with prices rising due to higher resource prices and the weaker yen resulting from the widening interest-rate differential between Japan and the United States.」

「During the second quarter of the fiscal year under review, Japan's economy showed signs of a pickup in personal consumption as activity restrictions were eased. However, the outlook remained uncertain due to the effects of higher resource prices and China's zero-COVID policy.」

「During the first quarter of the fiscal year under review, Japan's economy showed signs that the Omicron wave was peaking. However, the outlook remained uncertain as the invasion of Ukraine by Russia and other factors increased upward pressure on commodity prices, particularly crude oil.」

「During the third quarter of the fiscal year under review, Japan's economy was on a recovery trend after restrictions on behavior under the state of emergency related to COVID-19 were gradually eased and consumption began to recover. However, the outlook remained uncertain, as employment conditions deteriorated due in part to the prolonged infection-control measures.」

「During the second quarter of the fiscal year under review, the third state of emergency declared in response to the spread of COVID-19 was lifted on 20 June, except in Okinawa. However, highly transmissible variants were spreading rapidly, and the outlook remained uncertain as the pace of future vaccinations was expected to have a significant impact on economic activity.」

「During the first quarter of the fiscal year under review, Japan's economy showed signs of recovery, including the start of COVID-19 vaccinations. However, the outlook remained uncertain as the recovery in personal consumption had stalled and inbound demand remained virtually nonexistent.」

「During the third quarter of the fiscal year under review, Japan's economy had bottomed out after the sharp downturn caused by the spread of COVID-19 and was on a recovery trend. However, the outlook remained uncertain, as restrictions on consumption activity, including dining out and travel, continued in part because the pandemic had not yet come to an end. Within our group, we expect advertising placements to gradually recover from October 2020 as restrictions on corporate activities are lifted. However, we have made accounting estimates based on certain assumptions, including by assessing impairment losses on the assumption that the effects of the pandemic will continue at least through the fiscal year ending December 2021 and that the business environment will remain challenging throughout the fiscal year ending December 2020.」

「Although the state of emergency concerning COVID-19 was lifted nationwide in May 2020, changes in the spread of COVID-19 or its impact on the economic environment could reduce customer visits and affect the Group’s operating results and financial position.」

「During the first quarter of the fiscal year under review, Japan's economy faced a significantly weaker outlook, as consumption activity contracted sharply due to the impact of COVID-19 and capital investment was expected to be postponed or approached more cautiously amid declining corporate earnings.」

「During the fiscal year under review, corporate capital investment continued to increase as companies advanced streamlining and labor-saving investments associated with work-style reforms. However, the outlook remained uncertain as exports languished amid the slowdown in overseas economies, while manufacturing continued to weaken due to production stoppages caused by large typhoons and other factors.」

「During the third quarter of the fiscal year under review, Japan's economy showed a gradual recovery, with domestic demand, including personal consumption, capital investment and public investment, remaining solid. However, the outlook remained uncertain as exports continued to languish amid a slowdown in the global economy resulting from intensifying trade friction between the United States and China.」

「During the second quarter of the fiscal year under review, Japan's economy showed signs of a pickup, as the downward trend in goods exports came to a halt and inbound demand continued to expand gradually. However, the outlook remained uncertain as population decline and labor force participation approached supply constraints, causing growth in the number of employed people to slow.」

「During the first quarter of the fiscal year under review, corporate capital investment increased gradually as companies invested in streamlining and labor-saving measures against the backdrop of labor shortages. However, the outlook remained uncertain as overseas economies weakened due in part to the slowdown in China and exports stagnated.」

「During the fiscal year under review, Japan's economy showed signs of recovery, with exports and production activity picking up as the effects of natural disasters subsided and inbound demand expected to expand going forward. However, the outlook remained uncertain amid factors including a slowdown in the Chinese economy and the United States' protectionist trade policies, which could intensify trade friction and increase uncertainty.」

「During the third quarter of the fiscal year under review, Japan's economy remained on a moderate recovery trend, with personal consumption accelerating against the backdrop of solid employment and income conditions. However, the outlook remained uncertain, as the risk of weaker exports could not be ruled out due to uncertainty surrounding the policies of the Trump administration and the situation in North Korea.」

「During the second quarter of the fiscal year under review, Japan's economy was recovering moderately, with exports, daily-life activity, capital investment and personal consumption, among other areas of private demand, showing signs of a pickup. However, the outlook remained uncertain as companies continued to feel an acute labor shortage and population decline was expected to lead to a labor shortage.」

「During the first quarter of the fiscal year under review, Japan's economy was recovering moderately against the backdrop of solid employment and income conditions. However, the outlook remained uncertain as the recovery in production activity had paused and weak public-sector demand continued.」

「During the fiscal year under review, Japan's economy was recovering moderately, with increases in corporate capital investment and production, and employment and income conditions remaining solid. However, the outlook remained uncertain, as real wages remained weak and personal consumption grew only slowly.」

「During the third quarter of the fiscal year under review, Japan's economy remained on a moderate recovery trend, with personal consumption accelerating against the backdrop of solid employment and income conditions. However, the outlook remained uncertain, as the risk of weaker exports could not be ruled out due to uncertainty surrounding the policies of the Trump administration and the situation in North Korea.」

「During the second quarter of the fiscal year under review, Japan's economy showed a gradual recovery, with personal consumption increasing against the backdrop of improving consumer sentiment. However, the outlook remained uncertain due to sluggish growth in average wages at major companies and, overseas, geopolitical risks related to North Korea and the Middle East, as well as political risks in Europe and the United States.」

「During the first quarter of the fiscal year under review, Japan's economy was gradually picking up, supported by increased information-related investment, particularly in the IT industry, and resilient personal consumption. However, the outlook remained uncertain due to the unclear direction of U.S. policy and the increasingly apparent effects of a severe labor shortage.」

「During the fiscal year under review, Japan's economy was recovering moderately, with exports showing signs of a pickup due to the weaker yen, but the outlook remained uncertain amid factors including financial market turmoil resulting from the U.S. presidential election.」

「Although there are signs of a recovery in personal consumption and some indications of an economic pickup, the outlook remains uncertain, as the stronger yen is weighing on corporate earnings and inventory adjustments are exerting downward pressure.」