Fluctuations in Advertising Demand Due to the Domestic Economy and Increase in the Consumption Tax Rate

「There was no significant impact from the situation in the Middle East in the first quarter. At present, no significant negative impact is visible from the second quarter onward either, but if the situation continues for an extended period, it could affect the business from the second half onward.」

「Meanwhile, uncertainty about the outlook has intensified rapidly due to soaring resource prices and supply chain disruptions associated with heightened tensions in the Middle East that emerged at the end of the fiscal year.」

「During the cumulative first three quarters of the current fiscal year, the Japanese economy continued to recover gradually, supported by the recovery in inbound demand and a recovery in manufacturing. However, some weakness was evident, including a slowdown in the recovery of personal consumption due to elevated prices.」

「During the cumulative second quarter of the current fiscal year, the Japanese economy continued to recover gradually, supported by the recovery in services consumption and inbound demand and a recovery in manufacturing. However, personal consumption showed some weakness in its recovery due partly to the impact of elevated prices, which had continued from the previous year.」

「Despite some adverse effects from highly uncertain overseas economies, the economy continued to recover gradually, led by domestic demand, as inbound consumption recovered and pent-up demand emerged, particularly for services, following the COVID-19 pandemic.」

「The Japanese economy in the current fiscal year was characterized by a gradual recovery led by domestic demand, but showed some weakness in its recovery as concerns about an economic downturn persisted due to soaring resource prices associated with the Ukraine situation, global interest rate increases, and the rapid depreciation of the yen.」

「During the cumulative first three quarters of the current fiscal year (1 April 2022 to 31 December 2022, hereinafter the “third quarter”), the Japanese economy was broadly recovering, led by domestic demand. However, the recovery remained limited because of numerous sources of concern about the outlook, including global inflation, monetary tightening, slower growth in the Chinese economy, and the rapid depreciation of the yen.」

「During the cumulative second quarter of the current fiscal year, the Japanese economy continued to recover, led by domestic demand after restrictions on activity were lifted. However, it lacked strength due to the impact of soaring resource prices associated with the Ukraine situation, the rapid depreciation of the yen, and an economic slowdown caused by global inflation and interest rate hikes.」

「During the cumulative first quarter of the current fiscal year, the Japanese economy was subject to numerous downside factors, including supply chain disruptions caused by lockdowns in Chinese cities, soaring resource prices, and falling share prices. However, personal consumption, particularly demand for services, picked up after restrictions on activity were lifted, and the economy overall remained on a recovery path.」

「The Japanese economy in the current fiscal year showed signs of recovery, but lacked strength due to the impact of prolonged restrictions on activity associated with the spread of variants and the slowing recovery in production and exports caused by supply chain disruptions.」

「From October onward, there were signs of an accelerating economic recovery, including an upturn in personal consumption as restrictions on activity were gradually eased. However, as the Omicron variant spread worldwide toward the end of the year, uncertainty about the outlook again intensified.」

「During the cumulative second quarter of the current fiscal year, the Japanese economy continued to show signs of recovery, but lacked strength due to the impact of the prolonged state of emergency accompanying the spread of the Delta variant and the slowing recovery in production and exports caused by supply chain disruptions.」

「During the cumulative first quarter of the current fiscal year, the Japanese economy remained on a recovery path, supported by firm exports amid a recovery in overseas economies and signs of recovery in business sentiment and capital investment, particularly in manufacturing. However, some areas lacked strength, as restrictions on activity following the reissuance of the state of emergency weighed on the recovery in personal consumption.」

「During the cumulative first three quarters of the current fiscal year, the Japanese economy showed signs of recovery in exports, production, personal consumption, and other areas from the trough in the first quarter, which recorded the sharpest contraction on record, through the second quarter onward amid the impact of the COVID-19 pandemic. However, the level of economic activity itself remained sluggish.」

「During the cumulative second quarter of the current fiscal year, the Japanese economy deteriorated rapidly as personal consumption and business activity declined substantially, partly due to restrictions on activity, including the declaration of a state of emergency amid the COVID-19 pandemic. Although signs of a recovery emerged in the second quarter, conditions remained challenging.」

「During the cumulative first quarter of the current fiscal year, the Japanese economy suffered severe damage as both domestic and external demand contracted, particularly personal consumption and exports, amid the global spread of the novel coronavirus. Consumer and business sentiment also deteriorated sharply due to worsening employment and income conditions and concerns about the prolonged impact of various factors.」

「The economy deteriorated rapidly as the novel coronavirus spread worldwide toward the end of the fiscal year.」

「During the cumulative first three quarters of the current fiscal year, the Japanese economy showed resilience in the first half, supported mainly by domestic demand, including the effects of the change of era and front-loaded demand ahead of the consumption tax increase. From October onward, however, personal consumption declined due partly to the subsequent drop in front-loaded demand and the impact of typhoons, while exports also remained sluggish, resulting in a weakening economy.」

「During the cumulative second quarter of the current fiscal year, the Japanese economy continued to recover gradually, led by domestic demand. Capital investment maintained its growth momentum, while personal consumption remained firm, supported by the change of era and front-loaded demand ahead of the consumption tax increase. However, caution about the outlook remained strong, and consumer and business sentiment trended downward.」

「During the cumulative first quarter of the current fiscal year, the Japanese economy lacked strength, partly due to the prolonged US-China trade dispute and slower growth in the Chinese economy. Exports and production showed some weakness, while weaker sentiment among companies in manufacturing industries susceptible to external demand and among consumers also weighed on the economy.」

「During the cumulative first three quarters of the current fiscal year, the Japanese economy remained weak, partly due to repeated natural disasters, the prolonged US-China trade dispute, and the sharp decline in share prices toward the end of last year. Overall, however, the economy has remained on a gradual recovery path.」

「During the first half of the current consolidated cumulative period, factors weighing on the economy included intensifying trade friction between the United States and China, rising crude oil prices and natural disasters. However, corporate performance remained strong and personal consumption was firm, so the Japanese economy continued on a moderate recovery trend.」

「During the first quarter of the current consolidated cumulative period, corporate sentiment became more cautious due in part to intensifying trade friction originating in the United States and rising raw material prices. However, current economic conditions continued to recover moderately, supported by firm domestic and overseas demand.」

「During the first 3 quarters of the current consolidated cumulative period, the recovery in the Japanese economy became more pronounced, supported by increased exports accompanying the recovery in overseas economies, expanded capital investment against a backdrop of improved corporate earnings, improving consumer sentiment accompanying better employment conditions and rising stock prices, and various economic measures.」

「During the first half of the current consolidated cumulative period, the recovery in the Japanese economy became more pronounced, as corporate activity became more active, including through expanding exports amid accelerating recovery in overseas economies, and corporate business sentiment improved, supported by various economic measures and increased investment toward the Tokyo Olympics.」

「During the first quarter of the current consolidated cumulative period, the Japanese economy continued to recover moderately, supported by a recovery in consumer sentiment against a backdrop of strong corporate earnings, rising stock prices and continued improvement in the employment environment, as well as support from the Government’s large-scale economic measures.」

「Against this backdrop, the Group has continued to actively expand its business in accordance with its medium-term management plan, which ends in the fiscal year ending March 2019.」

「During the first half of the current consolidated cumulative period, the Japanese economy lacked strength across personal consumption, exports and production, partly due to the stronger yen, weak stock prices, the Kumamoto Earthquake and increasing uncertainty over the outlook for overseas economies following the UK’s decision to leave the EU.」

「During the first quarter of the current consolidated cumulative period, the Japanese economy experienced sluggish personal consumption, including a cooling in consumer sentiment, partly due to the stronger yen, weak stock prices and the impact of the Kumamoto Earthquake. In addition, increasingly cautious corporate sentiment strengthened the sense of stagnation in the economy.」

「The consumption tax rate is scheduled to be raised to 10% in October 2019, and this increase could adversely affect domestic economic conditions, including personal consumption, or lead to a decline in sales due to a reactionary drop in demand following rush demand before the increase.」