Economic Uncertainty and Concerns Over a Slowdown in Consumer Spending and Overseas Economies
First written in FY2016-Q3. 12 of 35 entries say "Worsened", first in FY2020-Q3. Latest entry: 2026-10-05.
Eternal Hospitality Group moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2022: 131 of 176 companies on the "Worse" side.
66 other companies' latest entry also says "Worsened".
- FY2026-H1Resilient eating-out demand alongside rising costsAnnual report
「Although the international situation has changed, the number of visitors to Japan remains high. In addition, demand for eating out remains firm, as opportunities to dine out have increased amid sustained wage growth. However, the operating environment is becoming increasingly challenging, with various factors weighing on earnings, including intermittent surges in raw-material prices, rising operating costs such as energy and labor costs, and higher store fit-out and construction costs.」
It indicates that food-service demand remains firm, supported by the number of visitors to Japan and wage growth, while higher costs for raw materials, energy, labor, store fit-outs and construction are weighing on earnings. - FY2025-H1Add consumers' cost-consciousnessAnnual report
「The operating environment for the food-service industry remains challenging. Demand for eating out continues to recover, supported by increased foot traffic following the easing of activity restrictions and the recovery in inbound demand. However, the industry faces rising raw-material prices, utility costs and labor costs, a worsening shortage of available workers, and increasingly cost-conscious consumers amid continued price inflation.」
While noting the recovery in food-service demand driven by the recovery in foot traffic and inbound demand, it newly adds the increasing cost-consciousness of consumers amid continued price inflation. - FY2024-Q3Recovery in consumer activity coincides with higher costsAnnual report
「The environment surrounding the food-service industry improved substantially as COVID-19 was classified as a Class 5 infectious disease under the Infectious Diseases Control Law in May 2023, economic activity normalized, foot traffic increased and inbound tourism recovered, leading to a significant recovery in domestic consumer activity. Meanwhile, the operating environment remains severe due to worsening international conditions, higher energy-resource and raw-material prices resulting from yen depreciation, and rising labor costs.」
Following the reclassification of COVID-19 as a Class 5 infectious disease, the Company cites the recovery in foot traffic, inbound tourism and domestic consumption, while also noting the severe environment caused by international conditions, yen depreciation, and higher resource, raw-material and labor costs. - FY2023RestatedAnnual report
「Meanwhile, further price increases are a concern due to the worsening international situation surrounding Ukraine, soaring prices for energy resources such as crude oil and for raw materials, and the depreciation of the yen. The operating environment remains severe due to high energy-resource and raw-material prices and rising labor costs.」
The Company reaffirms that the operating environment remains severe due to the situation surrounding Ukraine, resource and raw-material prices, yen depreciation and rising labor costs, while consumer activity is recovering from the effects of COVID-19. - FY2023-Q3WorsenedAnnual report
「Meanwhile, further price increases are a concern due to the worsening international situation surrounding Ukraine, soaring prices for energy resources such as crude oil and for raw materials, and the depreciation of the yen. The operating environment remains severe due to high energy-resource and raw-material prices and rising labor costs.」
While citing a recovery in consumer activity following the impact of COVID-19, the Company specifically identifies the situation surrounding Ukraine, soaring energy-resource and raw-material prices, yen depreciation and rising labor costs as factors contributing to the severe operating environment. - FY2023-Q2RestatedAnnual report
「The environment surrounding the food-service industry was affected for an extended period as the repeated spread and temporary subsiding of COVID-19 led to the intermittent application of states of emergency and priority preventive measures to prevent the spread of disease, affecting consumer activity over a prolonged period.」
The Company reaffirms the impact of COVID-19 on consumer activity. It also cites a recovery in consumer activity following the full lifting of priority preventive measures to prevent the spread of disease in March 2022. - FY2023-Q1WorsenedAnnual report
「Meanwhile, further price increases are a concern due to the worsening international situation surrounding Ukraine, soaring prices for energy resources such as crude oil and for raw materials, and the depreciation of the yen」
In addition to the previous infection-related and geopolitical risks, the Company cites the worsening situation surrounding Ukraine, soaring resource and raw-material prices, and concerns over further price increases caused by yen depreciation. - FY2022WorsenedAnnual report
「During the consolidated fiscal year, the food-service industry was affected by various requests from the national and local governments to shorten operating hours and refrain from serving alcohol to prevent the spread of COVID-19. From October 2021, these requests were gradually lifted and daily life began to return to normal. However, from January to March 2022 and again from July onward, a sharp increase in COVID-19 cases led to a tendency toward restrained consumer activity. The outlook is expected to remain unpredictable due to the spread of COVID-19 and the effects of geopolitical risks.」
After a recovery phase following the lifting of restrictions, cases increased again from January to March 2022 and from July onward, leading to more restrained consumer activity. Uncertainty over the outlook continues, including the effects of geopolitical risks as well as COVID-19. - FY2022-Q3Geopolitical risks cited againAnnual report
「The outlook is expected to remain unpredictable due to the spread of COVID-19 and the effects of geopolitical risks.」
In addition to COVID-19, the Company cites the effects of geopolitical risks as a factor contributing to uncertainty over the outlook. - FY2022-Q2WorsenedAnnual report
「However, as the number of COVID-19 cases surged again in January 2022, local governments once again issued requests for people to refrain from going out, and the outlook remained unpredictable.」
Although various restrictions had been lifted from October 2021 onward, the sharp increase in cases in January 2022 led local governments to reintroduce requests for people to refrain from going out, heightening uncertainty over the outlook. - FY2022-Q1Lifting of various restrictions and concerns over a sixth wave addedAnnual report
「During the cumulative first quarter, the food-service industry was affected by various requests from the national and local governments to shorten operating hours and refrain from serving alcohol to prevent the spread of COVID-19. From October 2021, these requests were gradually lifted and daily life began to return to normal. However, concerns were being raised over the need to prepare for a sixth wave of infections, and the outlook remained unpredictable.」
While requests to shorten operating hours and refrain from serving alcohol were gradually lifted from October 2021, the need to prepare for a sixth wave was recognized and uncertainty over the outlook was also cited. - FY2021WorsenedAnnual report
「During the consolidated fiscal year, Japan’s economy deteriorated rapidly and entered an extremely severe situation as economic activity was restricted amid the spread of COVID-19.」
The Company’s focus has shifted from uncertainty in overseas economies and other factors to the restriction of economic activity caused by COVID-19 and the rapid deterioration of the economy. - FY2021-Q3WorsenedAnnual report
「In the food-service industry in particular, personal consumption had shown signs of recovery after the state of emergency issued in April 2020 was lifted. However, in November 2020, Tokyo, Osaka and Aichi prefectures requested that restaurants serving alcohol shorten their operating hours. A new state of emergency was declared in January 2021 and later lifted, but priority preventive measures to prevent the spread of disease and a third state of emergency were subsequently imposed, mainly in urban areas. As a result, the izakaya sector in particular was significantly affected by requests to refrain from serving alcohol and substantial restrictions on operating hours.」
In addition to the previous infection-related and overseas political and economic risks, the Company cites priority preventive measures to prevent the spread of disease, a third state of emergency, requests to refrain from serving alcohol, and substantial restrictions on operating hours, with the impact on the food-service and izakaya sectors expanding. - FY2021-Q1WorsenedAnnual report
「During the cumulative first quarter, Japan’s economy deteriorated rapidly and entered an extremely severe situation as economic activity was restricted amid the spread of COVID-19. Although personal consumption showed signs of recovery after the state of emergency was lifted, the outlook remained unpredictable as the number of COVID-19 cases began to rise again.」
The Company recognizes that the economy deteriorated rapidly as economic activity was restricted by COVID-19, and that the number of cases was again trending upward. - FY2020-Q3WorsenedAnnual report
「During the cumulative third quarter, Japan’s economy remained uncertain, as intensifying US-China trade friction, concerns over an economic slowdown in China, unstable political developments overseas including Japan-South Korea relations, and the global spread of COVID-19 continued to weigh on the outlook.」
In addition to the previous concerns over US-China trade friction, an economic slowdown in China and overseas political developments, the Company adds the global spread of COVID-19 as a factor contributing to uncertainty over the economic outlook. - FY2020-Q2RestatedAnnual report
「Due to intensifying US-China trade friction, concerns over an economic slowdown in China, unstable political developments overseas including Japan-South Korea relations, and other factors, signs of slowing growth were seen in domestic capital investment and exports, and economic conditions remained uncertain.」
As in the previous quarter, the Company cites US-China trade friction, an economic slowdown in China, overseas political and economic risks including Japan-South Korea relations, slowing growth in domestic capital investment and exports, and uncertainty over the economic outlook. - FY2020-Q1China slowdown, Japan-South Korea relations and other overseas political and economic risks specifiedAnnual report
「During the cumulative first quarter, Japan’s economy remained uncertain, as intensifying US-China trade friction, concerns over an economic slowdown in China, unstable political developments overseas including Japan-South Korea relations, and other factors led to signs of slowing growth in domestic capital investment and exports.」
In addition to US-China trade friction, the Company specifically cites concerns over an economic slowdown in China and unstable political developments overseas, including Japan-South Korea relations, as factors slowing growth in domestic capital investment and exports. - FY2019US-China trade issues and uncertainty over overseas economies and policies specifiedAnnual report
「During the fiscal year, Japan’s economy continued on a moderate recovery trend, supported by improvements in corporate earnings and the employment and income environment. However, conditions remained unpredictable due to the potential impact of developments in US-China trade issues on the global economy and uncertainty surrounding overseas economic conditions and policies.」
In addition to the previous uncertainty in overseas economies, the Company cites the impact of US-China trade issues on the global economy and uncertainty surrounding overseas economic and policy developments. - FY2019-Q3RestatedAnnual report
「During the cumulative third quarter, Japan’s economy continued on a moderate recovery trend, supported by improvements in corporate earnings and the employment and income environment. However, overseas economies remained uncertain due partly to the effects of protectionist trade policies centered on the United States.」
As in the previous quarter, the Company cites uncertainty over the outlook for overseas economies resulting from the effects of protectionist trade policies centered on the United States. - FY2019-Q2Uncertainty caused by protectionist trade policiesAnnual report
「During the cumulative second quarter, Japan’s economy continued on a moderate recovery trend, supported by improvements in corporate earnings and the employment and income environment. However, overseas economies remained uncertain due partly to the effects of protectionist trade policies centered on the United States.」
In place of the previous references to US-China trade friction and related factors, the Company cites uncertainty over the outlook for overseas economies caused by the effects of protectionist trade policies centered on the United States. - FY2019-Q1US-China trade friction and sluggish consumer recovery addedAnnual report
「During the cumulative first quarter, Japan’s economy recovered moderately on improvements in corporate performance and employment conditions. However, concerns remain that worsening US-China trade friction could affect future economic conditions. Although wages continued to rise, consumption growth remained weak.」
In addition to the previous uncertainty in overseas economies, the Company cites worsening US-China trade friction and weak consumption growth despite rising wages as external concerns. - FY2018-Q3RestatedAnnual report
「However, uncertainty in overseas economies also remains, and the situation continues to be unclear.」
The Company continues to cite uncertainty in overseas economies and uncertainty over the economic environment. - FY2018-Q2RestatedAnnual report
「However, uncertainty in overseas economies also remains, and the situation continues to be unclear.」
The Company continues to cite uncertainty in overseas economies and uncertainty over the economic environment. - FY2018-Q1RestatedAnnual report
「However, uncertainty in overseas economies also remains, and the situation continues to be unclear.」
The Company continues to cite uncertainty in overseas economies and uncertainty over the outlook for the economic environment. - FY2017Concerns over the policies of the new US administration addedAnnual report
「During the fiscal year, Japan’s economy showed improvement in corporate earnings and employment conditions. However, sentiment remained weak and household consumption expenditure stayed sluggish, while concerns over the policies of the new US administration and geopolitical risks increased uncertainty over the outlook.」
The Company reiterates sluggish household consumption expenditure, geopolitical risks and uncertainty over the outlook, while also citing concerns over the policies of the new US administration. - FY2017-Q3Geopolitical risks addedAnnual report
「During the cumulative third quarter, Japan’s economy showed improvement in corporate earnings and employment conditions. However, sentiment remained weak and household consumption expenditure stayed sluggish, while heightened volatility in foreign exchange rates and geopolitical risks increased uncertainty over the outlook.」
The Company reiterates sluggish household consumption expenditure, heightened volatility in foreign exchange rates and uncertainty over the outlook, while also citing geopolitical risks. - FY2017-Q2RestatedAnnual report
「During the cumulative second quarter, Japan’s economy showed improvement in corporate earnings and employment conditions. However, sentiment remained weak and household consumption expenditure stayed sluggish, while heightened volatility in foreign exchange rates and downside risks from a slowdown in overseas economies increased uncertainty over the outlook.」
The Company continues to cite sluggish household consumption expenditure, heightened volatility in foreign exchange rates, downside risks from a slowdown in overseas economies, and uncertainty over the outlook. - FY2017-Q1RestatedAnnual report
「During the cumulative first quarter, Japan’s economy showed improvement in corporate earnings, employment conditions and the income environment. However, sentiment remained weak and household consumption expenditure stayed sluggish, while heightened volatility in foreign exchange rates and downside risks from a slowdown in overseas economies increased uncertainty over the outlook.」
The Company continues to cite sluggish household consumption expenditure, heightened volatility in foreign exchange rates, downside risks from a slowdown in overseas economies, and uncertainty over the economic outlook. - FY2016RestatedAnnual report
「However, the situation remains unstable, with the recovery in personal consumption lagging and concerns continuing over an economic slowdown in China and other emerging Asian economies and resource-rich countries. In addition, the Nikkei Stock Average fell from the ¥20,000 range to the ¥16,000 range, while the yen appreciated and share prices declined, and negative interest rate policy was implemented. This heightened uncertainty over economic conditions, leaving the outlook for consumer sentiment less than optimistic.」
The Company continues to cite uncertainty surrounding personal consumption, overseas economies, foreign exchange rates and share prices, and consumer sentiment as external risks. - FY2016-Q3First statedAnnual report
「The situation remains unstable, with the recovery in personal consumption lagging and concerns continuing over an economic slowdown in China and other emerging Asian economies and resource-rich countries. In addition, the Nikkei Stock Average fell from the ¥20,000 range to the ¥16,000 range, while the yen appreciated and share prices declined, and negative interest rate policy was implemented. This heightened uncertainty over economic conditions, leaving the outlook for consumer sentiment less than optimistic.」
The Company cites the delayed recovery in personal consumption, concerns over a slowdown in overseas emerging and resource-rich economies, a stronger yen and lower share prices, negative interest rates, and uncertainty over the outlook for consumer sentiment as external factors. Changes in the Nikkei Stock Average are quantified.