Economic and market uncertainty

「In preparing the financial statements, estimates and forecasts were made based on the assumption that ordinary demand is expected during the following consolidated fiscal year, despite uncertainties including turmoil in the global economy resulting from the policies of the Trump administration, a prolonged downturn in China's economy, increased inflationary pressures against a backdrop of the prolonged situation in Ukraine and heightened tensions in the Middle East causing higher resource and energy costs, further yen depreciation, soaring prices and higher interest rates.」

「The outlook remained uncertain due to the impact of higher prices and concerns about a slowdown in overseas economies. Exchange-rate volatility and persistent geopolitical risks also contributed to greater uncertainty in the business environment.」

「Meanwhile, the outlook for the global economy remains uncertain due to downward pressure on economic activity from monetary tightening policies in the US and Europe, geopolitical risks arising from the conflict in Ukraine and conditions in the Middle East, and slower growth in China's economy.」

「The Group's operating environment is changing rapidly, with changes in the manufacturing sector's external environment, including the shift to electric vehicles and accelerated overseas relocation, while competition within the industry is intensifying year by year. Although economic and social activity is normalizing and inbound demand is showing signs of recovery, the outlook is expected to remain uncertain due to concerns over exchange-rate trends, high global prices and unstable international conditions.」

「The uncertain business environment is expected to be prolonged as the global economy slows amid China's prolonged economic stagnation, the protracted situation in Ukraine, inflation caused by soaring resource and energy prices, and monetary tightening to curb inflation.」

「The global economy is expected to face a prolonged uncertain business environment, as the unstable international situation resulting from protracted geopolitical risks continues, while soaring raw-material prices and energy costs, as in Japan's economy, are compounded by monetary tightening policies in various countries.」

「Meanwhile, amid continued price inflation, consumers have become more inclined to economize due in part to the depreciation of the yen and unstable global conditions, and the outlook remains uncertain. An uncertain business environment is also expected to continue for the global economy, with concerns about the impact on personal consumption of the rapid depreciation of the yen, in addition to globally higher resource prices resulting from the prolonged Ukraine crisis.」

「Uncertainty about the outlook for the global economy increased, and concerns about a recession deepened, amid soaring resource and energy prices due to the impact of the situation surrounding Russia and Ukraine, as well as sharp exchange-rate fluctuations accompanying interest-rate increases in Western countries aimed at curbing global inflation.」

「An increasingly uncertain business environment is expected to continue for the global economy, including the prolonged depreciation of the yen, anxiety over the international situation surrounding Ukraine and China's shift away from its zero-COVID policy.」

「An uncertain business environment is expected to continue, with concerns about downside risks to economic conditions arising from the prolonged depreciation of the yen, anxiety over the international situation surrounding Ukraine and the risk of restrictions on movement associated with China's response to COVID-19.」

「During the first quarter of the fiscal year ending March 2023 (1 April 2022 to 30 June 2022), Japan's economy showed signs of a gradual recovery and normalization as COVID-19 infections subsided. However, positive and negative factors were mixed, including rising prices resulting from higher raw-material costs and soaring energy prices. In addition, numerous issues raised concerns about their impact on the global economy, including exchange-rate developments, particularly the rapid depreciation of the yen, anxiety over the international situation surrounding Ukraine and the risks of China's zero-COVID policy, and an uncertain business environment is expected to continue.」

「During the consolidated fiscal year, Japan's economy showed signs of a gradual recovery as COVID-19 vaccinations progressed, but the outlook remained uncertain, with intermittent declarations of a state of emergency and priority preventive measures implemented due to the spread of new variants. Recovery from shortages of semiconductor components and materials also remained slow. In addition, numerous issues raised concerns about their impact on the global economy, including anxiety over the international situation surrounding Ukraine and tighter restrictions on movement due to the rapid spread of COVID-19, and an uncertain business environment is expected to continue.」

「While the global economy remained in an uncertain phase due to the renewed spread of COVID-19, economic activity steadily picked up and the economy entered a recovery trend, supported by economic policies and monetary easing in various countries. However, an uncertain business environment continues, including supply delays and logistics disruptions caused by shortages of semiconductor components and materials, as well as soaring energy prices.」

「Vaccines became more widely available, particularly in developed countries, and the global economy moved toward recovery as economic activity resumed in countries around the world. However, concerns remain about the impact on the economy of prolonged US-China trade friction and shortages of components such as semiconductors.」

「However, because the international situation also presents challenges, including intensifying US-China tensions stemming from COVID-19, it is believed that considerable time will be required for the global economy to return to normal.」

「During the first quarter of the fiscal year ending March 2021 (1 April 2020 to 30 June 2020), Japan's economy deteriorated rapidly and the outlook became uncertain due to the impact of voluntary restrictions on economic activity to prevent the spread of COVID-19. In the global economy as well, countries implemented stringent measures including travel restrictions, forcing a substantial contraction in economic activity, and this situation continues.」

「The machine-tool and machine-tool accessory industry to which the Company belongs remained sluggish due to declining demand resulting from the prolonged US-China trade friction and the suspension of operations at customers' factories caused by the rapid spread of COVID-19.」

「During the nine-month period ended 31 December 2019 (1 April 2019 to 31 December 2019), Japan's economy remained on a moderate recovery path, supported in part by the effects of various policies, including improvements in employment and income conditions. However, exports and production, particularly in the manufacturing sector, remained weak amid an uncertain outlook due to the effects of major natural disasters, the increase in the consumption tax rate, US-China trade friction and developments concerning the UK's withdrawal from the EU.」

「During the six-month period ended 30 September 2019 (1 April 2019 to 30 September 2019), Japan's economy remained on a moderate recovery path, supported by improving employment conditions and firm corporate earnings. However, the domestic economy became uncertain amid concerns about slower economic growth due to US-China trade friction, the impact of volatility in financial and capital markets, and a decline in domestic consumption following the consumption tax increase.」

「During the first quarter of the fiscal year ending March 2020 (1 April 2019 to 30 June 2019), Japan's economy remained on a moderate recovery path as corporate performance and employment and income conditions continued to improve. However, concerns remained about the impact of slower economic growth caused by US-China trade friction and volatility in financial and capital markets on the global economy. In the machine-tool industry, growing uncertainty about the global economic outlook led to a widespread cautious stance toward capital investment, and the machine-tool and machine-tool accessory industry to which the Group belongs remained sluggish.」

「Although the machine-tool and machine-tool accessory industry to which the Group belongs has remained firm, recent total machine-tool orders have fallen below the previous year's level, and customers are expected to continue holding off on investment against a backdrop of US-China trade friction.」

「The global economy continued on an expansionary path, but concerns remain about the impact of a further escalation in trade frictions on the global economy, as China's economy has been slowing against a backdrop of deleveraging policies and trade friction.」

「The global economy also continued on an expansionary path, but concerns remain about the impact that trade protectionist policies led by the US may have on the global economy going forward.」

「Although concerns such as geopolitical risks remained, the global economy sustained moderate growth as the robust US economy was joined by recoveries in China and emerging-market economies.」

「Although concerns such as geopolitical risks remained, the global economy as a whole continued on a moderate recovery path.」

「The global economy showed signs of a moderate recovery, with economic recoveries continuing in major countries including the US, the euro area and China. However, numerous concerns remained for the global economy, including developments in the US administration and rising tensions on the Korean Peninsula, and the outlook remained uncertain.」

「Meanwhile, although some regions, including China, showed signs of an economic recovery, the outlook remained uncertain amid concerns over slower growth in emerging-market economies, the UK's withdrawal from the EU and increasing uncertainty resulting from the policies of the new US administration.」

「During the consolidated fiscal year, Japan's economy showed some improvement in the second half, against a backdrop of the government's fiscal policies and the Bank of Japan's monetary easing policies, after corporate earnings and capital investment had declined in the first half. However, uncertainty about global conditions, including the UK's withdrawal from the EU and the transition to a new US administration, meant that the outlook remained uncertain.」

「In the machine-tool industry to which the Group belongs, total machine-tool orders reported by the Japan Machine Tool Builders' Association for January through September 2016 declined 19% year on year, and companies' willingness to invest in capital equipment is believed to be trending downward.」

「According to total machine-tool orders announced by the Japan Machine Tool Builders' Association for January through May 2016, orders declined 22.5% year on year, and companies' willingness to invest in capital equipment has been trending downward, raising concerns that this may lead to a decline in future orders for machine tools.」

「Amid growing concerns over global conditions, foreign exchange markets have experienced sharp volatility and equity markets have declined, resulting in heightened uncertainty.」