Uncertainty in the Consumer Environment Due to China's Economic Slowdown, a Stronger Yen and Falling Stock Prices

「Meanwhile, continued price increases, fluctuations in interest rates and foreign exchange, and soaring energy costs are weighing on personal consumption and corporate activity. In addition to developments in US trade policy, risks that could slow the global economy include the prolonged geopolitical risks centered on the situation in the Middle East, leaving the economic outlook persistently uncertain.」

「Meanwhile, in addition to the impact of US trade policy and volatility in the financial and capital markets, concerns over a slowdown in the global economy due to prolonged geopolitical risks in the Middle East and Ukraine, as well as the risk of a decline in consumer sentiment caused by sluggish real wage growth amid rising prices, increased, and the outlook for the economy remained uncertain.」

「Meanwhile, in addition to the impact of policy changes by the US President Trump, geopolitical risks in the Middle East and Ukraine, yen depreciation, and rising prices caused by soaring raw material prices, the outlook for the economy remained uncertain.」

「Meanwhile, in addition to prolonged geopolitical risks in the Middle East and Ukraine and unstable foreign exchange movements, the outlook for the economy remained uncertain amid price increases caused by soaring raw material prices and rising interest rates.」

「Meanwhile, in addition to prolonged geopolitical risks and continued yen depreciation, the outlook for the economy remained uncertain as real wages continued to decline relative to the pace of growth in consumer prices.」

「Meanwhile, in addition to risks of increasing instability in the global situation, including the invasion of Ukraine and the conflict in Palestine, soaring energy prices, and rising prices caused by yen depreciation, serious damage from the Noto Peninsula earthquake in January also raised concerns that consumers would increasingly focus on saving and refrain from spending, and conditions remained uncertain.」

「During the cumulative nine-month period of the fiscal year under review, Japan's economy showed a recovery trend as rebound demand grew with the successive revival of various events accompanying the normalization of economic activity, and personal consumption continued to recover moderately. The economy was also supported by inbound demand, which had recovered to 90% of its pre-COVID level. Meanwhile, the outlook remained uncertain amid risks of increasing instability in the global situation, including the invasion of Ukraine and the conflict in Palestine, soaring energy prices, and concerns over consumers' growing preference for saving in response to rising prices caused by yen depreciation.」

「Meanwhile, in addition to soaring energy prices for gasoline, electricity and gas, concerns arose over consumers' growing focus on protecting their livelihoods amid rising prices caused by yen depreciation, and conditions remained uncertain.」

「In addition to the escalating situation in Ukraine, supply chain instability caused by China's shift away from its zero-COVID policy, yen depreciation, and risks of an economic downturn due to higher resource prices, the outlook for the economy remained uncertain.」

「In addition to the escalating situation in Ukraine, supply chain disruptions caused by lockdowns in Chinese cities, yen depreciation, and risks of an economic downturn due to higher resource prices, the outlook for the economy remained uncertain despite an overall recovery trend.」

「Although the number of people infected with COVID-19 gradually stabilized and the flow of people recovered in various regions during Golden Week, pointing to a move toward normalization of economic activity, risks of an economic downturn also emerged, including the escalating situation in Ukraine and the impact of higher resource prices. The outlook for the economy therefore remained uncertain.」

「In the specialty retail industry to which our group belongs, the recovery in demand for fashion-related products failed to progress as the impact of calls to refrain from going out due to the spread of COVID-19 continued. In addition, amid factors including soaring gasoline prices, demand at home, known as cocooning consumption, expanded, while the continuing shift in consumption from physical stores to online shopping became even more pronounced.」

「From autumn onward, the rollout of second vaccine doses progressed and new infections declined, prompting signs of a resumption in consumption activity. However, concerns including the impact of the Omicron variant remained, and conditions of continued uncertainty about the outlook persisted.」

「Although there are signs that consumption activity is resuming in some areas, concerns including a rapid increase in infections caused by the Delta variant and delays in vaccinations remain, and conditions of continued uncertainty about the outlook persist.」

「During the first quarter of the fiscal year under review, Japan's economy remained in a challenging environment. Although there were signs of recovery in some areas, the impact of COVID-19 continued for an extended period, and a third state of emergency was declared. Corporate earnings deteriorated, the recovery in the income environment was delayed, and consumer sentiment declined amid repeated restrictions on activity.」

「During the consolidated fiscal year under review, Japan's economy remained in an extremely challenging environment as the impact of COVID-19 continued for an extended period, with corporate earnings and employment conditions deteriorating and consumption activity repeatedly stagnating amid calls for people to refrain from going out.」

「In addition, although there are signs that economic activity is gradually being restored, concerns over a renewed spread of the infection remain, and conditions of considerable uncertainty continue.」

「During the first nine months of the fiscal year, employment and income conditions continued to improve, but the outlook remained uncertain due to the effects of the consumption tax increase on personal consumption and the escalation of US-China trade friction overseas.」

「As overseas economies such as Europe and China slowed, the outlook for the economy became more uncertain due to the prolonged US-China trade friction and worsening Japan-South Korea relations, described as the worst since the end of World War II.」

「During the first three months of the fiscal year, employment and income conditions continued to improve, but uncertainty about the outlook increased as the risk of an economic downturn became apparent due to US-China trade friction.」

「During the fiscal year, Japan’s economy continued to recover moderately, with personal consumption showing signs of recovery against a backdrop of improving corporate earnings and employment conditions. However, the outlook remained uncertain as overseas economies showed instability, including trade issues between the United States and China and slower growth in China’s economy.」

「The outlook for the global economy remained uncertain, as concerns about the global economy increased due to US-China trade friction and other factors.」

「During the first six months of the fiscal year, Japan’s economy continued to recover moderately, with corporate earnings remaining firm and employment and income conditions continuing to improve. However, the outlook remained uncertain as overseas economic uncertainty, including US-China trade friction, and geopolitical risks could not be fully dispelled.」

「During the fiscal year, Japan’s economy continued to recover moderately. Although concerns remained about the effects of unstable political conditions overseas and geopolitical risks, domestic corporate earnings, employment and income conditions improved, and personal consumption also showed signs of recovery.」

「During the first nine months of the fiscal year, Japan’s economy continued to recover moderately overall, as corporate earnings, employment conditions and the income environment continued to improve, while personal consumption remained flat.」

「During the first six months of the fiscal year, Japan’s economy continued to recover moderately, with corporate earnings and employment conditions continuing to improve, although personal consumption still lacked strength. At the same time, the outlook remained uncertain amid political and economic developments in Europe, the United States and emerging Asian economies, as well as rising geopolitical risks.」

「During the first three months of the fiscal year, Japan’s economy continued to recover moderately against a backdrop of improving corporate earnings and employment conditions. However, the outlook remained uncertain due to a slowdown in Asian economies, including China, and rising uncertainty in overseas conditions.」

「The outlook for the economy remained uncertain as exchange rates and share prices fluctuated sharply due to issues surrounding the UK’s withdrawal from the EU and the establishment of a new administration in the United States.」

「Personal consumption remained stagnant against a backdrop of persistent consumer thriftiness. In addition, the outlook for the economy remained uncertain due to the rapid appreciation of the yen following the decision on the UK’s withdrawal from the EU and turmoil in the stock market.」

「Amid concerns about a slowdown in China’s economy, yen appreciation and falling share prices, the Kumamoto earthquake also raised concerns about downward pressure on consumer sentiment. Consumer confidence therefore remained stagnant, and the outlook continued to be uncertain.」