Uncertainty over consumer sentiment due to emerging-market stagnation, yen appreciation and falling stock prices

「During the interim consolidated accounting period, the Japanese economy was on a gradual recovery trend. Although improvements in employment and income conditions and the effects of various policies are expected to support a gradual recovery, the impact of developments in the Middle East must continue to be closely monitored.」

「During the interim consolidated accounting period, private consumption entered a gradual recovery trend, although some stagnation was seen in the economy owing to uncertainty resulting from U.S. trade policy and other factors. However, soaring raw material, resource, and food prices and accelerating price increases amid the yen's depreciation posed risks to personal consumption, and the outlook remained uncertain.」

「During the interim consolidated accounting period, economic activity became increasingly active and the economy entered a gradual recovery trend, although some signs of stagnation were seen. However, the outlook remained uncertain owing to soaring raw material and resource prices resulting from the prolonged Russian invasion of Ukraine, accelerating inflation accompanying rapid foreign exchange movements, and volatility in financial markets.」

「Increased inbound demand and a recovery in global IT-related demand are also providing support for the economy. However, energy prices and other prices have remained high amid the yen's depreciation, raising concerns that stronger household preferences for saving could cause personal consumption to stagnate. In addition, negative factors such as a slowdown in overseas economies and supply constraints caused by labor shortages have left the outlook for the Japanese economy uncertain.」

「During the fiscal year under review, social and economic activity in Japan continued to normalize as COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law and inbound demand recovered following the easing of activity restrictions and restrictions on entry from overseas. Although employment and income conditions also improved, the rapid depreciation of the yen accelerated inflation, and personal consumption showed some weakness as rising prices encouraged consumers to economize. The outlook nevertheless remained uncertain owing to the prolonged situation in Ukraine, prolonged monetary tightening centered on Europe and the United States to curb inflation, developments in the Middle East, and weak domestic and external demand in the Chinese economy.」

「The outlook for the economy remains uncertain owing to the impact of global monetary tightening, a slowdown in overseas economies including concerns over the future of the Chinese economy, and the impact of rising prices on households and companies.」

「During the second quarter of the fiscal year under review, economic activity became increasingly active and the economy entered a gradual recovery trend as activity restrictions were eased further, partly because COVID-19 was reclassified as a Class 5 disease under Japan's Infectious Diseases Control Law. However, the outlook remained uncertain owing to the prolonged Russian invasion of Ukraine, soaring raw material and resource prices, the yen's depreciation, and accelerating global inflation.」

「During the first quarter of the fiscal year under review, social and economic activity in Japan gradually normalized as COVID-19 subsided and activity restrictions were eased in stages, with personal consumption of travel and dining out beginning to recover moderately. However, the outlook for the Japanese economy became uncertain owing to the prolonged Russian invasion of Ukraine, soaring raw material and resource prices, accelerating global inflation, monetary tightening in major countries including the United States, and higher import prices resulting from the sharp appreciation of the dollar against the yen.」

「The outlook remains uncertain owing to the prolonged Russia-Ukraine situation, soaring raw material and energy prices, sharp currency fluctuations, and a decline in personal consumption resulting from rising prices.」

「During the third quarter of the fiscal year under review, the Japanese economy was moving toward normalization as activity restrictions were eased despite the continuing impact of COVID-19. However, concerns over the impact on personal consumption and consumer behavior of soaring resource and raw material prices resulting from the prolonged Russia-Ukraine situation, and price increases accompanying the rapid depreciation of the yen, meant that the outlook remained uncertain.」

「The outlook remains uncertain, with concerns over a sharp increase in domestic infections, soaring resource prices and the yen's depreciation resulting from the situation in Ukraine, and sluggish personal consumption due to rising prices.」

「During the first quarter of the fiscal year under review, the Japanese economy faced an uncertain outlook as infections from a new COVID-19 variant spread again and priority preventive measures were issued. This was compounded by soaring raw material prices and logistics costs, difficulties procuring electronic components, including semiconductor components, the impact of Russia's invasion of Ukraine, and price increases resulting from the rapid depreciation of the yen.」

「Following the lifting at the end of September of all states of emergency and priority preventive measures across Japan, signs of a gradual recovery emerged. However, the emergence and renewed spread of infections from the new Omicron variant have made it difficult to predict future developments and their impact.」

「Overseas, activity restrictions are gradually being eased as COVID-19 vaccination progresses. However, the impact on the domestic economy remains uncertain, owing not only to unstable political developments, including intensifying trade friction between the United States and China and turmoil in the Middle East, but also to soaring crude oil prices and the global semiconductor shortage.」

「The global economy is beginning to improve, supported by the recovery of the Chinese economy and the resumption of economic activity in Europe and the United States as vaccination expands. However, the outlook remains uncertain owing to the prolonged U.S.-China trade friction and the renewed spread of COVID-19 caused by variants.」

「The global economy is transitioning from the COVID-19 crisis to the post-pandemic period as vaccination progresses, particularly in developed countries. Supported by the effects of economic stimulus measures, especially in the United States and China, the global economy has shifted toward a gradual recovery. However, the extent to which economic activity has resumed varies by country depending on the COVID-19 infection situation, and developments must be closely monitored.」

「Overseas, concerns remain over a prolonged deterioration in U.S.-China tensions over trade and stagnation in economic activity resulting from mandatory movement and stay-at-home restrictions, particularly in Europe and the United States, where COVID-19 infections have again been spreading. The outlook therefore remains difficult to predict.」

「The outlook for the global economy also remains uncertain. Recovery has been slow amid the continued spread of COVID-19, while trade relations between the United States and China have become increasingly serious.」

「The outlook remains uncertain, owing to factors including the impact of developments in U.S.-China trade relations on the global economy and uncertainty surrounding overseas economies and policies.」

「The outlook remains uncertain, owing to factors including the impact of the consumption tax increase scheduled for October and a slowdown in the Chinese economy accompanying the intensification of U.S.-China trade friction.」

「Outside Japan, numerous downside risks to the economy remain, including concerns over a slowdown in the Chinese economy resulting from the prolonged U.S.-China trade friction issue and uncertainty surrounding the UK's withdrawal from the EU, and the outlook remains uncertain.」

「The outlook remains uncertain, including due to escalating trade friction resulting from U.S. protectionist policies.」

「Against a backdrop of concerns over the outlook for the U.S. and Chinese economies, uncertainty remains over whether Japan's economic recovery trend will continue.」

「Amid heightened political tensions with neighboring countries and strong concerns over the outlook for the U.S. and Chinese economies, uncertainty remains over whether Japan's economic recovery trend will continue.」

「There are concerns about the impact of downside risks to the economy arising from policy developments in the United States and China, as well as negotiations over the United Kingdom's withdrawal from the EU, and the outlook remains uncertain.」

「The business environment is expected to continue recovering moderately with policy support, but uncertainty over the outlook remains amid sluggish emerging-market economies and the policies advocated by the new U.S. administration.」

「In overseas markets, the U.S. economy continued to recover as monetary policy normalized, while the previously stagnant Chinese economy showed signs of recovery as a result of various policies. In Europe, the recovery is expected to slow due to continued uncertainty over the outlook arising from the United Kingdom's withdrawal from the EU, and the situation requires attention to downside risks.」

「The economies of emerging Asian countries and resource-rich countries remained sluggish. In addition, the issue of the United Kingdom's withdrawal from the EU increased uncertainty in Europe, and uncertainty over the outlook could not be ruled out.」