Greater uncertainty over corporate earnings due to the slowdown in the Chinese economy

「During the interim consolidated accounting period, uncertainty surrounding the global situation increased further due to the prolonged Russia-Ukraine situation and intensifying conflicts in the Middle East, as well as the US Trump administration's tariff-increase policies and the slowdown in the Chinese economy.」

「The challenging operating environment and uncertainty over the economic outlook continue due to the prolonged Russia-Ukraine situation, the intensifying Israel-Palestine conflict, high raw material and other prices caused by the persistently weak yen, and the continuing downward trend in real wages.」

「During the six months ended the second quarter, the environment surrounding the Group remained challenging and the economic outlook uncertain. The effects of COVID-19 subsided and tourism demand began to recover, while the stock market remained firm. However, the Russia-Ukraine situation was prolonged, the confrontation between Israel and Palestine intensified, and high raw-material costs and persistently weak yen levels continued to drive up prices in general.」

「During the cumulative first quarter of the consolidated fiscal year, the environment surrounding the group remained challenging and the outlook for the economy uncertain. Although the effects of the novel coronavirus infection subsided and tourism demand and other areas showed signs of recovery, the conflict between Israel and Palestine intensified in addition to the prolonged Russia-Ukraine situation, while prices of goods and services continued to rise due to high raw material costs and the persistently weak yen.」

「In May, the novel coronavirus infection was reclassified as a Class 5 disease, and a gradual economic recovery was expected as restrictions on activities and entry controls were eased. Meanwhile, price increases for essentials such as electricity and food have continued due to the prolonged Russia-Ukraine situation, the depreciation of the yen and rising energy prices, and a challenging operating environment continues amid concerns over a cooling in consumer sentiment.」

「During the nine months ended the third quarter, although the transition of COVID-19 to Category 5 and the easing of activity restrictions and immigration controls created conditions in which a gradual economic recovery was expected, price increases for essentials such as electricity and food continued due to the prolonged Russia-Ukraine situation, the weakening yen and rising energy prices, among other factors. Concerns about weaker consumer sentiment persisted, and a challenging operating environment continued.」

「During the six months ended the second quarter, although a gradual economic recovery was expected due to the easing of activity restrictions and immigration controls despite the remaining effects of COVID-19, the prolonged Russia-Ukraine situation, the weakening yen and rising energy prices led to continued price increases for essentials such as electricity and food, strengthening thrift-oriented spending and resulting in a challenging operating environment due to weaker consumer sentiment.」

「During the cumulative first quarter period, although the effects of the novel coronavirus infection remained, a gradual economic recovery was expected due to the easing of restrictions on activities and entry controls. However, prices of goods and services have continued to rise against the backdrop of the prolonged Russia-Ukraine situation, the rapid depreciation of the yen and rising energy prices.」

「Initially, a gradual economic recovery was expected as COVID-19 cases declined and restrictions on activity were fully lifted. However, consumer sentiment weakened and a challenging, uncertain operating environment continued due to the renewed spread of infections caused by the Omicron variant, Russia's invasion of Ukraine after the start of the year, and growing concerns about inflation caused by the rapid depreciation of the yen, among other factors.」

「During the cumulative third quarter period, Japan's economy was expected to recover gradually as the number of novel coronavirus infections declined and restrictions on activities were fully lifted. However, the retail industry continues to face a severe and uncertain operating environment due to growing concerns over inflation caused by Russia's invasion of Ukraine and the rapid depreciation of the yen.」

「During the six months ended the second quarter, Japan's economy saw a substantial decline in personal consumption following the consumption tax increase in October, but it had gradually begun to recover after the start of the year. However, the situation changed completely due to the spread of COVID-19, making a slowdown in economic activity unavoidable.」

「During the cumulative third quarter period, Japan's economy was in a phase of gradual recovery, but uncertainty over the outlook for corporate earnings increased due to the prolonged US-China trade friction and other factors.」

「During the cumulative second quarter period, Japan's economy was in a phase of gradual recovery, but uncertainty over the outlook for corporate earnings increased due to factors including the slowdown in the Chinese economy.」