Risk of an Economic Slowdown Due to Semiconductor Shortages, Supply Chain Disruptions and Inflation
First written in FY2022-Q2. 9 of 13 entries say "Worsened", first in FY2022-Q3. Latest entry: FY2026.
Sojitz moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 28 of 39 companies on the "Worse" side.
40 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In particular, prices, including energy prices, have surged due to the situation in the Middle East, and continued vigilance is needed regarding the risk of accelerating global inflation and the possibility of declining consumption and production activity.」
Even after some easing of semiconductor supply constraints, the Company continues to recognise risks from higher energy prices, accelerating inflation and lower consumption and production activity. - FY2026-H1WorsenedAnnual report
「Looking ahead, heightened uncertainty over tariff increases and policy management is expected to restrain capital investment and trade expansion, while higher prices resulting from increased trade costs and deteriorating consumer sentiment are expected to slow consumption, leading to lower global economic growth through 2026.」
Risks from higher trade costs due to tariff increases, higher prices, slower consumption and lower economic growth became newly tangible. - FY2025-H1SoftenedAnnual report
「During the interim consolidated accounting period of the consolidated fiscal year under review, inflation had peaked in many countries, and central banks in countries other than Japan began shifting from monetary tightening to easing.」
The document states that inflation had peaked in many countries and central banks had begun shifting from monetary tightening to easing, indicating that recognition of inflation and monetary tightening risks had eased somewhat. - FY2024-Q3WorsenedAnnual report
「In Asia, growth rates are trending lower amid weak overseas markets, including China as well as Europe and the US. Domestic demand is providing support, but inflation has resurged in some countries as food and other prices have surged, prompting some to begin raising interest rates. For 2024, higher prices, including through rising import prices, are a concern amid heightened geopolitical risks related to Ukraine and the situation in the Middle East.」
In Asia, the slowdown in growth due to weak overseas markets, renewed inflation and rate hikes resulting from soaring food prices, and higher import prices associated with geopolitical risks were identified. - FY2024-Q2WorsenedAnnual report
「In Asia, growth rates are trending lower amid weak external demand, particularly from the European and US markets. Although many countries are being supported by domestic demand, concerns remain over higher prices and interest rates resulting from the prolonged situation in Ukraine.」
While semiconductor supply constraints have been almost resolved, the risk of slower Asian growth due to weak external demand from Europe and the US, higher prices and higher interest rates was explicitly identified. - FY2024-Q1Easing of semiconductor supply constraintsAnnual report
「In addition, semiconductor supply constraints have been almost resolved, and automobile sales are also recovering along with the recovery in automobile production, which had been curtailed by reducing the number of operating days at factories.」
Semiconductor supply constraints are said to have been almost resolved, partly easing the previously identified supply constraint risk. Meanwhile, concerns about a recession caused by inflation and monetary tightening continue separately. - FY2023WorsenedAnnual report
「During the consolidated fiscal year, downward pressure on the global economy became evident as Russia’s military invasion of Ukraine was prolonged and monetary tightening aimed at curbing inflation continued. Following bank failures in the United States and concerns over the management of banks in Europe, financial authorities in various countries moved quickly to prevent the spread of credit concerns.」
In addition to accelerating inflation and monetary tightening, US bank failures and concerns over the management of European banks emerged, making the risks of an economic slowdown and financial market disruption more tangible. - FY2023-Q3WorsenedAnnual report
「In Europe, the ECB continues to prioritise price stability and maintain its policy of responding with aggressive rate hikes, and rate hikes are expected to continue through the first half of 2023. In energy-related areas, while the EU is strengthening sanctions against Russia, Europe remains heavily dependent on Russian crude oil and gas, raising concerns that adverse effects on broad value chains, including manufacturing, will intensify.」
In addition to the expected continuation of rate hikes to address inflation, adverse effects on manufacturing and value chains from sanctions against Russia and dependence on Russian crude oil and gas supplies continue to materialise. - FY2023-Q2WorsenedAnnual report
「During the cumulative second-quarter period of the consolidated fiscal year, downward pressure on the global economy increased due to Russia’s military invasion of Ukraine and the effects of sanctions imposed by various countries, accelerating inflation and the resulting global monetary tightening, and uncertainty over the outlook for China’s economy. Although the novel coronavirus pandemic was subsiding, concerns over a future recession require continued monitoring.」
Accelerating inflation and global monetary tightening have emerged as broader operating-environment risks, accompanied by concerns about an economic recession. In Europe, concerns also remain over adverse effects on value chains from sanctions against Russia and dependence on Russian crude oil and gas. - FY2023-Q1WorsenedAnnual report
「In Europe, the ECB is stepping up its response to inflation. Following the rate hike already decided for July, another hike in September appears highly likely. At the same time, although sanctions against Russia are being strengthened, the region remains heavily dependent on Russia for crude oil and gas, raising concerns that adverse effects on broad value chains, including manufacturing, will intensify.」
In addition to inflation and interest-rate hikes, concerns are growing over adverse effects on value chains from sanctions against Russia and dependence on Russian oil and gas supplies, with supply constraint and inflation risks increasing. - FY2022MaterialisedAnnual report
「During the period, downward pressure on the global economy increased amid the start of Russia’s military invasion of Ukraine and the effects of sanctions imposed by various countries. Continued vigilance is required over surging resource prices, supply constraints and accelerating inflation resulting from supply-chain disruptions, sharp interest-rate increases and yen depreciation caused by monetary tightening by central banks, as well as the possibility of a renewed spread of the novel coronavirus.」
Semiconductor supply constraints, inflation, insufficient supply in logistics and industrial production, and higher interest rates resulting from monetary tightening became tangible features of the operating environment during the fiscal year. - FY2022-Q3WorsenedAnnual report
「The number of COVID-19 cases worldwide remained broadly stable and the economic recovery progressed. However, supply failed to keep pace with the rapid recovery in demand in areas such as logistics and industrial production, driving up inflation rates in countries around the world and increasing pressure for interest-rate hikes in some regions.」
In addition to semiconductor supply constraints, the inability of supply to keep pace with the recovery in demand, rising inflation rates and pressure for interest-rate hikes became apparent, increasing supply chain disruption and inflation risks. - FY2022-Q2First statedAnnual report
「Meanwhile, in manufacturing, there are concerns that supply constraints caused by shortages of components and raw materials, including semiconductors, may persist, while continued vigilance is needed regarding the risk that a sharp rise in energy prices could accelerate inflation.」
For the first time, shortages of components and raw materials, including semiconductors, prolonged supply constraints and accelerating inflation due to sharply higher energy prices were explicitly identified as independent external risks.