Uncertainty From China's Slowdown, Yen Appreciation and Sluggish Consumer Spending

「During the fiscal year under review, Japan's economy remained on a gradual recovery trend as employment and income conditions improved, despite the impact of rising prices. Meanwhile, geopolitical risks remained elevated and unstable international conditions persisted. Heightened tensions in the Middle East caused crude oil prices to surge, while shortages of naphtha made it difficult to procure ethylene, a raw material for plastics and chemical products. Shortages and price increases for related products triggered a chain reaction of price increases, and the outlook remained uncertain.」

「The outlook remained uncertain as geopolitical risks continued at elevated levels and it became necessary to monitor fluctuations in exchange rates, equity markets and prices resulting from developments in monetary policy in various countries.」

「However, the outlook remained uncertain due to the prolonged geopolitical risks and the strengthening of protectionist positions in US trade policy following Donald Trump's re-election in the US presidential election.」

「During the cumulative consolidated period for the third quarter under review, the economy showed signs of a gradual recovery as socioeconomic activity continued to normalize in the post-COVID period. The Nikkei Stock Average temporarily exceeded its record closing high during trading hours, also having a positive psychological impact. However, the outlook for the economy remained uncertain due to downside risks in overseas economies, including concerns over the future of the Chinese economy, and continued geopolitical risks in Eastern Europe, the Middle East and East Asia.」

「However, geopolitical risks in Eastern Europe, the Middle East and East Asia have increased, while inflation and signs of disruption in overseas economies have also emerged, and the outlook remains uncertain.」

「During the cumulative consolidated period for the first quarter under review, the economy showed signs of a gradual recovery due to the recovery in personal consumption and inbound tourism demand. However, downside risks to the economy remained a concern due to rising geopolitical risks in Eastern Europe and East Asia, surging crude oil and raw-material prices, and global monetary tightening, and the outlook remained uncertain.」

「During the fiscal year under review, Japan's classification of COVID-19 under the Infectious Diseases Control Law was changed to Category 5, socioeconomic activity moved toward normalization, and signs of an economic recovery emerged. ... Meanwhile, concerns remained over a slowdown in the global economy against a backdrop of rising geopolitical risks in Eastern Europe and East Asia, surging raw-material and energy prices, and global monetary tightening, and the outlook remained uncertain.」

「Personal consumption has remained sluggish as inflation driven by surging raw-material and energy prices has risen. In addition, the outlook for the global economy remains uncertain due to rising geopolitical risks in Eastern Europe and East Asia, higher policy rates in the US and Europe, and sharp exchange-rate fluctuations.」

「During the cumulative consolidated period for the second quarter under review, the Japanese economy began recovering gradually as socioeconomic activity returned to normal, although the number of COVID-19 infections continued to fluctuate. Meanwhile, resource and raw-material prices remained elevated due to rising geopolitical risks in Eastern Europe, and personal consumption remained sluggish as prices of energy, food and other goods rose. In addition, the outlook for the global economy remained uncertain due to higher policy rates in the US and Europe and rising geopolitical risks in East Asia.」

「The outlook for the global economy remained uncertain due to rising geopolitical risks in Eastern Europe and East Asia, surging resource and raw-material prices, and sharp exchange-rate fluctuations resulting from US policy-rate increases.」

「During the cumulative consolidated period for the third quarter under review, the number of COVID-19 infections increased as the Omicron variant spread, and quasi-emergency measures to prevent the spread of disease were again issued across broad areas. In addition, financial markets, including foreign exchange and equities, were affected by US interest-rate hikes and the end of tapering, while higher crude oil prices and rising geopolitical risks in Eastern Europe also contributed to continued uncertainty about the economic outlook.」

「During the cumulative consolidated period for the second quarter under review, the number of infections declined as COVID-19 vaccinations progressed, and states of emergency and other restrictions were lifted. Corporate earnings and capital investment began to recover, and signs of improvement also emerged in personal consumption. However, as infections with new variants were spreading overseas, it was necessary to closely monitor developments in infections in Japan and abroad, and the outlook remained uncertain.」

「During the cumulative consolidated period for the first quarter under review, the recovery of the economy remained slow due to the impact of a state of emergency declared following the resurgence of COVID-19 infections, leaving the outlook uncertain.」

「During the fiscal year under review, the spread of COVID-19 and the re-declaration of a state of emergency restricted corporate activity and affected a broad range of industries in Japan, making it impossible to foresee when economic activity overall would return to normal.」

「During the cumulative consolidated period for the third quarter under review, signs of a partial recovery emerged in personal consumption and corporate economic activity. However, the outlook remained uncertain as a state of emergency was declared in January 2021 in 11 prefectures and metropolitan areas due to the resurgence of COVID-19 infections.」

「During the cumulative consolidated period for the second quarter under review, economic activity gradually resumed after the state of emergency declared in response to COVID-19 was lifted, and signs of a gradual recovery emerged. However, the outlook remained uncertain amid the resurgence of COVID-19 infections.」

「During the cumulative consolidated period for the first quarter under review, economic activity in Japan stagnated due to the global spread of COVID-19. Although some recovery in the economy was expected after the lifting of the state of emergency, the recovery remained slow, and the outlook was uncertain as the US-China trade friction issue also continued for an extended period.」

「During the cumulative consolidated period for the third quarter under review, personal consumption continued to recover gradually due to favorable employment conditions and rising wages. However, the outlook for the economy remained uncertain due to deteriorating consumer sentiment following the consumption tax increase, US-China trade friction and the spread of COVID-19.」

「During the cumulative consolidated period for the second quarter under review, personal consumption continued to recover gradually on the back of favorable employment conditions and rising wages. As for the outlook, the global economy remained weak and uncertain against the backdrop of US-China trade friction, while in Japan it was necessary to monitor consumer sentiment following the consumption tax increase.」

「During the cumulative consolidated period for the first quarter under review, the Japanese economy remained on a gradual recovery trend against a backdrop of improving employment and income conditions, but indicators pointing to a slowdown in the global economy increased due to the impact of US-China trade friction resulting from US protectionist policies, leaving the outlook uncertain.」

「During the fiscal year under review, the Japanese economy remained on a gradual recovery trend as employment and income conditions improved. However, the spread of protectionism resulting from escalating US-China trade friction raised concerns about the potential impact on the global and domestic economies, leaving uncertainty about the outlook.」

「During the cumulative consolidated period for the third quarter under review, the Japanese economy remained on a gradual recovery trend, but uncertainty about the outlook increased due to instability in overseas economic and political conditions and the impact of volatility in financial markets.」

「Under these business conditions, our group has engaged in video production, which involves planning and producing animation works; publishing, which involves planning, producing and selling comic magazines and other publications and distributing electronic comics; and rights licensing, which generates royalties and revenue-sharing income from the secondary use of works.」

「During the cumulative consolidated period for the first quarter under review, the Japanese economy remained on a gradual recovery trend due to improvements in corporate earnings and employment conditions, but the outlook remained uncertain amid concerns over the potential impact of protectionist US trade policies on the global economy and the effects of monetary policy exit strategies in developed countries.」

「The outlook remained uncertain due to the risk of Italian sovereign debt increasing and Italian government bond yields rising, raising concerns about a eurozone debt crisis, as well as the potential impact on the global economy of the spread of protectionism amid escalating US-China trade friction.」

「The US and European economies remained firm, but rising long-term interest rates in the US showed signs of disrupting global financial and capital markets, leaving the outlook uncertain.」

「During the cumulative consolidated period for the second quarter under review, the Japanese economy remained uncertain due to the slowdown in the Chinese economy and geopolitical risks, but corporate earnings and employment conditions improved, and the economy remained on a gradual recovery trend.」

「During the cumulative consolidated period for the first quarter under review, the Japanese economy remained on a gradual recovery trend, supported by improvements in corporate earnings and employment conditions, but the outlook remained uncertain due to factors including the impact of US policy management and rising geopolitical risks.」

「In Japan, however, the outlook became difficult to assess due to weak personal consumption, concerns over protectionist policies under the new US president and turmoil surrounding North Korea.」

「During the cumulative consolidated period for the third quarter under review, the Japanese economy was on a gradual recovery trend as corporate earnings and employment conditions improved, although personal consumption remained weak. The US and European economies were also gradually recovering, but the recovery remained weak, and the outlook stayed uncertain due to factors including the UK's withdrawal from the EU and developments under the new US administration.」

「During the cumulative consolidated period for the second quarter under review, the Japanese economy remained on a gradual recovery trend as employment conditions improved, but the outlook remained uncertain due to stagnant personal consumption and fluctuations in exchange rates and share prices caused by uncertain overseas factors.」

「Share prices have remained sluggish amid concerns over the impact of economic slowdowns in China and elsewhere and the stronger yen on corporate earnings, while personal consumption also shows signs of stagnation, increasing uncertainty about the outlook.」