Yen appreciation and falling share prices, sluggish personal consumption, and changes in inbound demand

「During the interim consolidated accounting period under review, Japan's economy followed a gradual recovery trend as improvements in income conditions resulting from wage increases offset other factors, but prices continued to rise because of soaring raw material and energy prices. In addition, the outlook became uncertain because of geopolitical risks, including the situation in the Middle East.」

「Meanwhile, the further rise in prices has increased the burden of living expenses, and consumers’ preference for saving has strengthened further, leaving the outlook uncertain.」

「During the first nine months of the fiscal year, Japan’s economy began moving toward normalization as the reclassification of COVID-19 to Category 5 under the Infectious Diseases Control Law increased the movement of people in Japan and overseas, raising expectations for a recovery driven by inbound demand and other factors. Personal consumption also offers prospects for a new lifestyle different from that of the past several years. However, the surge in raw-material and resource prices against a backdrop of an unstable international situation and the impact of the weaker yen has driven up prices, further heightening consumers’ concerns about household finances and their preference for saving, leaving the outlook uncertain.」

「During the cumulative second quarter of the fiscal year under review, Japan's economy began moving toward normalization as the reclassification of COVID-19 as a Class 5 disease under the Infectious Diseases Control Law increased the movement of people, while inbound demand was also expected to increase with the rise in visitors to Japan. Personal consumption also offered hope of a new lifestyle different from that of the past several years, but the outlook remained uncertain as higher prices resulting from soaring raw material and resource costs, against a backdrop of unstable international conditions and the weaker yen, further heightened consumers' focus on protecting their household budgets and continued to encourage frugality.」

「During the current first-quarter cumulative consolidated period, economic activity began to move toward normalisation as the movement of people increased following the easing of activity restrictions related to COVID-19 and the reclassification of COVID-19 to Category 5 under the Infectious Diseases Control Law. Inbound demand was also expected to increase with the rise in foreign visitors to Japan. Although there were expectations for a new lifestyle different from that of the past several years, the outlook remained uncertain as consumers became increasingly concerned about household finances and continued to focus more on saving because rising raw-material and resource prices, driven by unstable international conditions and the weaker yen, pushed up prices.」

「During the current second-quarter cumulative consolidated period, signs of an economic recovery emerged as restrictions on activity were eased and social activity moved toward normalisation following a decline in COVID-19 cases. However, the outlook remained uncertain amid concern that worsening international conditions would prolong the sharp increases in raw-material and crude oil prices and lead to a global slowdown in economic activity. Regarding personal consumption, consumers continued to become more focused on saving because of concern about COVID-19, higher raw-material and crude oil prices, and rising prices resulting from the weaker yen.」

「During the first three months of the fiscal year, Japan’s economy showed signs of recovery as the severe conditions caused by COVID-19 gradually eased. However, the deterioration of the international situation has prolonged the surge in raw-material and crude-oil prices, and concern about stagnant global economic activity remains, leaving the outlook uncertain.」

「There was a period when infections temporarily declined and activity restrictions were gradually eased, producing signs of an economic recovery. More recently, however, the outlook has remained uncertain amid concern about the rapid spread of the Omicron variant and a global slowdown in economic activity resulting from the situation in Ukraine and other factors.」

「During the current third-quarter cumulative consolidated period, Japan's economy continued to face significant restrictions on economic activity following the reissuance of the state of emergency and the application of priority preventive measures amid the continued spread of COVID-19. More recently, infections declined as vaccination became widespread, activity restrictions were gradually eased and signs of an economic recovery emerged. However, the outlook remained uncertain amid concern about a renewed spread of infections resulting from the emergence of new variants and other factors.」

「During the current first-quarter cumulative consolidated period, Japan's economy remained uncertain as economic activity was significantly restricted following the reissuance of the state of emergency and the application of priority preventive measures amid the continued spread of COVID-19.」

「Furthermore, during the third quarter, infections continued to spread, and the government-led Go To Campaign, which had been implemented alongside measures to prevent the spread of infection, was temporarily suspended from the end of last year. The impact on the economy was substantial, and the outlook remained uncertain.」

「During the first six months of the fiscal year, the business environment remained challenging due to stagnant economic activity resulting from the global spread of COVID-19 and the loss of inbound demand.」

「During the first three months of the fiscal year, the business environment remained challenging due to stagnant economic activity resulting from the global spread of COVID-19 and the loss of inbound demand.」

「During the first nine months of the fiscal year, the economy was on a gradual recovery trend, partly due to an increase in foreign visitors associated with events such as the Rugby World Cup, and the recovery is expected to continue, supported by increased demand for infrastructure construction and other projects ahead of the approaching Tokyo Olympics. However, concern remains about the impact of trade issues and the slowdown in the Chinese economy, while stagnant consumption resulting from the consumption-tax increase that began on 1 October and the unusually warm winter have left the business environment uncertain.」

「However, concern remains about the impact of developments in trade issues and the slowdown in the Chinese economy on the economy. In addition, consumption could stagnate and the economy could slow as a result of the consumption tax increase that took effect on 1 October, leaving the outlook uncertain.」

「During the current first-quarter cumulative consolidated period, the economy was on a gradual recovery path. The recovery is expected to continue, supported by increased demand for infrastructure construction and other projects ahead of the Tokyo Olympics, which was one year away, and by an increase in foreign visitors. However, the impact of developments in trade issues and the slowdown in the Chinese economy requires attention, while the outlook remains uncertain because of concerns about the effects of successive natural disasters and chronic labor shortages in Japan.」

「During the current third-quarter cumulative consolidated period, personal consumption was on a gradual recovery path, supported by strong corporate earnings and improving employment conditions. However, the outlook remained uncertain, as successive natural disasters and chronic labor shortages were a concern in Japan, while developments in trade issues and the adverse impact of protectionist moves on the global economy were also a concern.」

「During the first six months of the fiscal year, personal consumption was on a gradual recovery trend, supported by strong corporate earnings and improving employment conditions. However, concerns remain about the impact in Japan of successive natural disasters and chronic labor shortages, while overseas, concern remains about the adverse impact of protectionist trends on the global economy, leaving the outlook uncertain.」

「Inbound demand is considered one of the factors behind the strong performance. The popularity of products made in Japan, which has continued for several years, remains strong. Given the expected increase in visitors to Japan ahead of the 2020 Tokyo Olympics, this is a category with continued potential, and the company will implement various initiatives as a priority category.」

「Going forward, the recovery is expected to continue, driven by increased demand for infrastructure construction and other projects ahead of the Tokyo Olympics and by a recovery in overseas economies, which is expected to boost exports. However, the outlook is expected to remain uncertain because of successive natural disasters, higher raw-material prices, chronic labor shortages, geopolitical risks including the situation on the Korean Peninsula, and the administration of US President Donald Trump.」

「Going forward, the recovery is expected to continue, driven by increased demand for infrastructure construction and other projects ahead of the Tokyo Olympics and by a recovery in overseas economies, which is expected to boost exports. However, the outlook is expected to remain uncertain because of the effects of successive natural disasters, chronic labor shortages, geopolitical risks including the situation on the Korean Peninsula, and the administration of US President Donald Trump, which have heightened concerns about household finances and caused personal consumption to stagnate.」

「During the first six months of the fiscal year, the business environment was on a gradual recovery trend, supported by higher exports resulting from the weaker yen, higher share prices and strong corporate earnings, while employment conditions improved. Although the recovery is expected to continue, driven by increased demand for infrastructure construction and other projects ahead of the Tokyo Olympics and higher exports amid a recovery in overseas economies, the business environment is expected to remain uncertain due to domestic and international political developments, including the administration of U.S. President Donald Trump and declining approval ratings for the Abe administration, as well as sluggish personal consumption resulting from heightened concerns about household finances.」

「During the fiscal year, the business environment remained uncertain. Although the economy was on a gradual recovery trend, uncertainty about overseas economies and unstable exchange rates caused consumers to remain cautious and heightened concerns about household finances, resulting in sluggish personal consumption. Changes also began to emerge in inbound demand.」

「During the current third-quarter cumulative consolidated period, the business environment remained uncertain. Although the economy was on a gradual recovery path, volatile movements in foreign exchange rates and share prices created unstable conditions, resulting in sluggish personal consumption due to stalled consumer sentiment and heightened concerns about household finances, among other factors, while inbound demand also began to change.」

「During the first six months of the fiscal year, the business environment remained uncertain. Although the economy was on a gradual recovery trend, personal consumption remained sluggish due to consumers’ cautious spending amid the stronger yen and weaker share prices, as well as heightened concerns about household finances, while changes also began to emerge in inbound demand.」