More Cautious Investment Stance and Economic Stagnation Due to Yen Appreciation and Other Factors

「During the interim consolidated accounting period, Japan’s economy remained on a moderate recovery trend against the backdrop of improvements in employment and income conditions. However, the outlook for the economic environment remained uncertain due to continued price increases, heightened attention to potential interest-rate rises resulting from monetary-policy developments, geopolitical risks including the situation in the Middle East, volatility in the financial and capital markets, and other factors.」

「In Japan's real estate industry, to which our group belongs, home prices rose as construction material prices and labor costs remained high. In addition, the impact of inflation caused prospective owner-occupiers to remain cautious about purchasing homes.」

「During the interim consolidated accounting period, the economy continued on a moderate recovery trend due to a recovery in personal consumption and capital investment, as well as improvements in wages and employment. However, the outlook remained uncertain due to U.S. tariff policies and geopolitical risks involving Ukraine and the Middle East.」

「During the interim consolidated accounting period, social and economic activity normalized due to inbound demand exceeding pre-pandemic levels and improvements in the employment and income environment. However, international conditions and foreign-exchange markets remained unstable, making the economic outlook uncertain.」

「During the cumulative first quarter period, the economy remained on a moderate recovery trend as inbound demand recovered and corporate capital-investment demand increased, despite persistently strong consumer thrift preferences caused by rising prices and a downturn centered on manufacturing.」

「Geopolitical risks, particularly those involving Ukraine and the Middle East, continued overseas. In Japan, the economic outlook remained uncertain due to persistently high raw-material and energy prices and falling real wages caused by the rise in the consumer price index.」

「During the cumulative third quarter period, social and economic activity normalized as the novel coronavirus was reclassified to Category 5, and the economy continued to show signs of a moderate recovery. However, the prolonged situation in Ukraine, soaring raw-material and energy prices, interest-rate hike risks and high prices continued to have a significant impact on consumption, leaving the economic outlook uncertain.」

「During the cumulative second quarter period, social and economic activity normalized as restrictions to control the novel coronavirus were eased and inbound demand recovered against the backdrop of yen depreciation. However, the economic outlook remained uncertain due to soaring resource and energy prices, inflation caused by further yen depreciation, the prolonged situation in Ukraine and other factors.」

「During the cumulative first quarter period, social and economic activity normalized as various restrictions related to the novel coronavirus were eased, including the change to an approach under which mask-wearing was left to individual judgment, and the economy showed signs of a moderate recovery. However, the outlook remained uncertain due to concerns over an overseas economic downturn against the backdrop of global monetary tightening, the prolonged situation in Ukraine, soaring resource and raw-material prices, and inflation caused partly by yen depreciation.」

「During the fiscal year, social and economic activity gradually moved toward normalization as restrictions on activity related to the novel coronavirus were eased. Nevertheless, the outlook for the economy remained uncertain due to the prolonged situation in Ukraine, rising energy and raw-material prices and the rapid depreciation of the yen.」

「Although the economy showed signs of recovery despite the continuing effects of the novel coronavirus disease, energy and raw-material prices remained high due to the prolonged situation in Ukraine. In addition, continued rapid yen depreciation resulting from widening interest-rate differentials with other countries caused the price index to rise gradually, and the economic outlook remained uncertain.」

「During the cumulative second quarter period, Japan’s economy became unstable due to the worsening situation in Ukraine, rising policy rates in various countries and the ongoing trend of yen depreciation, although infections from novel-coronavirus variants had passed their peak and were declining. Raw-material and energy prices remained high and prices continued to rise, creating concerns over their impact on social and economic activity.」

「During the cumulative first quarter period, uncertainty persisted due to the arrival of the sixth wave of the novel coronavirus and Russia’s invasion of Ukraine. Energy prices, including crude oil, were expected to remain high, increasing the economic burden on companies and consumers and heightening concerns over the risk of an economic recession.」

「During the fiscal year, Japan’s economy remained unstable as personal consumption and corporate economic activity repeatedly stalled and resumed depending on infection conditions. Although expectations for increased economic activity grew as vaccinations became widespread, concerns arose over the impact of variant viruses and rising crude-oil and raw-material prices on consumption, leaving the outlook uncertain.」

「During the cumulative third quarter period, economic and social activity remained severely constrained as the vaccination campaign progressed, while states of emergency and priority preventive measures were implemented or extended due to the emergence of variants and the renewed spread of the disease. Although expectations for economic normalization increased as vaccinations became more widespread, the economic outlook remained uncertain.」

「During the cumulative second quarter under review, Japan’s economy continued its economic and social activity while repeatedly experiencing increases and decreases in the number of COVID-19 cases. Although the start of vaccinations raised expectations for the outlook, the timing of the pandemic’s end remained uncertain and difficult economic conditions continued.」

「During the cumulative first quarter under review, Japan’s economy remained subject to an uncertain outlook as the government issued a second state of emergency, mainly in the Tokyo metropolitan area and other regions where infections were spreading, amid the ongoing COVID-19 pandemic.」

「During the fiscal year under review, Japan’s economy was in an extremely severe condition as social and economic activity stagnated due to the spread of COVID-19. The state of emergency declared in April 2020 was lifted in May and economic activity gradually resumed, but infections spread again toward year-end and the outlook remained uncertain.」

「During the cumulative third quarter under review, Japan’s economy deteriorated significantly as economic activity stagnated due to the impact of COVID-19. Although various economic stimulus measures were introduced by the national and local governments following the lifting of the state of emergency, uncertainty continued regarding when the pandemic would subside and how the economy would develop.」

「The economy continued to deteriorate rapidly due to the global spread of the novel coronavirus disease, resulting in extremely difficult conditions. Although the lifting of the state of emergency and the resumption of economic activity raised expectations that the decline would bottom out, the outlook remained uncertain due to concerns over a second and third wave of infections and intensifying U.S.-China tensions.」

「During the cumulative first quarter under review, Japan’s economy remained in a severe condition due to the spread of the novel coronavirus disease in Japan and overseas from late January onward.」

「Economic trends remained uncertain due to U.S.-China trade friction, Japan-South Korea relations, uncertainty in the European economy associated with the United Kingdom’s withdrawal from the EU, and concerns over the spread of the novel coronavirus, among other factors.」

「During the cumulative third quarter under review, Japan’s economy continued to see gradual improvements in employment and income conditions. However, economic trends remained uncertain due to U.S.-China trade friction, Japan-South Korea relations and uncertainty surrounding the European economy associated with the United Kingdom’s withdrawal from the EU.」

「During the cumulative second quarter under review, Japan’s economy continued to recover moderately as the employment and income environment improved. However, the outlook for the global economy remained uncertain due to intensifying U.S.-China trade friction and confusion surrounding the United Kingdom’s withdrawal from the EU.」

「During the cumulative first quarter under review, Japan’s economy continued on a moderate recovery trend as the employment and income environment improved. However, the outlook remains uncertain due to trade issues, overseas economic conditions and the effects of the consumption tax increase, among other factors.」

「During the cumulative third quarter under review, Japan’s economy remained on a moderate recovery trend as corporate earnings and the employment and income environment improved, although attention remains necessary with respect to uncertainty in overseas conditions, intensifying trade friction and developments in monetary policy.」

「During the cumulative second quarter period, Japan’s economy remained subject to strong concerns over geopolitical risks and an uncertain outlook. Nevertheless, it moved onto a moderate recovery trend as employment and income conditions improved against the backdrop of the government’s various economic policies.」

「During the cumulative first quarter under review, Japan’s economy remained on a moderate recovery trend, despite the effects of uncertainty in overseas economies and volatility in financial and capital markets, supported by improvements in the employment and income environment and corporate earnings.」

「Although the economy continued on a moderate recovery trend, supported by the government’s ongoing economic policies and the Bank of Japan’s monetary easing, the outlook remains uncertain due to factors including heightened geopolitical risks surrounding North Korea and future political and economic developments, including further increases in U.S. policy interest rates.」

「Although the economy continued on a moderate recovery trend, supported by the government’s ongoing economic policies and the Bank of Japan’s monetary easing, the outlook remains uncertain due to factors including heightened geopolitical risks surrounding North Korea and future political and economic developments, including further increases in U.S. policy interest rates.」

「During the cumulative second quarter under review, Japan’s economy remained subject to uncertainty about its outlook as concerns grew over the impact of the new U.S. administration’s policy implementation on the global economy. Nevertheless, personal consumption remained resilient against a backdrop of recovering corporate earnings and improving employment conditions, supported by economic and monetary policies, and the economy remained on a moderate recovery trend.」

「During the cumulative first quarter under review, Japan’s economy remained subject to uncertainty about its outlook due to concerns over a downturn in the economies of China and other emerging Asian countries, and changes in interest rate policies and political conditions in various countries. Nevertheless, supported by improvements in the employment and income environment resulting from the government’s economic policies and by resilient personal consumption, the economy was on a moderate recovery trend.」

「If concerns over the economies of China and emerging Asian countries intensify, the trend of yen depreciation and rising share prices that has supported the economic recovery to date may reverse toward yen appreciation and falling share prices, causing the recovery trend to stall. The situation therefore remains uncertain.」

「During the cumulative third quarter under review, Japan’s economy continued on a moderate recovery trend, with improvements seen in the employment environment. However, uncertainty remained due to the rapid appreciation of the yen and decline in share prices resulting from factors including the United Kingdom’s withdrawal from the European Union (EU), as well as growing concerns over a slowdown in overseas economies, particularly in emerging markets.」

「During the cumulative second quarter under review, Japan’s economy continued to recover moderately, supported in part by the effects of the government’s economic policies and the Bank of Japan’s monetary policy. However, investment sentiment has become more cautious due to yen appreciation and other factors, and the economy remains unable to emerge from its pause.」