Global Economy, Overseas Policies and Geopolitical Uncertainty

「The business environment surrounding the company during the current interim accounting period remained highly uncertain, as solid demand for corporate capital investment and digitalization was offset by price inflation arising from fluctuations in foreign exchange rates and trends in resource prices.」

「During the interim accounting period, the operating environment surrounding the Company became more uncertain overall due to the effects of protracted international conflicts and US trade policies, making trends in corporate performance difficult to forecast. In Japan, although the income environment has improved, rising prices have reduced real wages, leaving challenges to achieving sustainable growth.」

「During the fiscal year, the operating environment surrounding the Company was marked by continued price increases across a broad range of items, including energy and food, resulting in negative real income and sluggish personal consumption. It is also necessary to closely monitor the impact on the Japanese economy of developments in the uncertain economic policies of major foreign countries.」

「During the interim accounting period, the operating environment surrounding the Company improved in terms of income, but personal consumption did not recover due to factors including rising prices and utility costs. In addition, concerns about developments in interest-rate policy and a downturn in the US and European economies have had a significant impact on exchange-rate trends and stock markets.」

「As rising prices and developments in monetary policy make the outlook for business sentiment difficult to forecast」

「In the financial industry, for which the Company provides consulting services, expectations for improved earnings power are increasing across a broad range of sectors, including banks, securities companies, and investment management companies, in response to changes in interest-rate policy and rising stock markets.」

「In the financial industry, for which the Company provides consulting services, rising interest rates overseas and sharp exchange-rate fluctuations are currently putting pressure on earnings.」

「On the other hand, trends in corporate performance and personal consumption are becoming increasingly uncertain due to inflation caused by sharp exchange-rate fluctuations and soaring energy and raw material prices.」

「On the other hand, conditions remain such that attention is required regarding trends in corporate earnings and personal consumption due to factors including sharp exchange-rate fluctuations and inflation caused by soaring energy and raw material prices.」

「During the second quarter cumulative period, the Japanese economy continued to show signs of recovery despite the impact of the spread of COVID-19. On the other hand, uncertainty about the outlook has increased due to supply constraints caused by a semiconductor shortage and other factors, soaring energy prices, and global inflation.」

「On the other hand, concerns remain that supply constraints caused by a global semiconductor shortage and other factors, rising geopolitical risks, and soaring energy and raw material prices will slow the recovery in corporate earnings and personal consumption, leaving the outlook difficult to forecast.」

「During the third quarter cumulative period, a state of emergency declaration was issued in April due to the spread of COVID-19, significantly affecting socioeconomic activity. Although conditions have been moving toward normalization since the declaration was lifted, the difficult-to-forecast economic environment has continued amid supply-side constraints caused by a global semiconductor shortage and other factors, soaring raw material prices, and concerns about the spread of new variants overseas.」

「During the second quarter cumulative period, the Japanese economy was affected by the resurgence of COVID-19, which led to the issuance of a state of emergency declaration in April that remained in effect through September. Although vaccination progressed during that period, there was still no sign that the infections would end, and the difficult economic environment continued.」

「During the first quarter cumulative period, personal consumption fell sharply after the third state of emergency declaration was issued in April in response to the resurgence of COVID-19 infections. Although economic activity is expected to recover as the number of vaccinated people increases, the infection trend and the pace of economic recovery remain uncertain.」

「During the fiscal year, the Japanese economy rapidly stagnated from April 2020 due to the spread of COVID-19. Although there were signs of a recovery afterward, there was no sign that the infections would end, and the economic outlook remained uncertain.」

「Although the economy had been recovering gradually as the level of socioeconomic activity was raised, infections began spreading rapidly again in November, raising concerns about the resulting impact on economic activity.」

「Although the economy has been recovering gradually as the level of socioeconomic activity has been raised, concerns about the resurgence of infections, continued corporate restraint on investment and deteriorating business performance, and weakness in employment conditions persist, leaving the economic outlook extremely uncertain.」

「During the first quarter cumulative period, the Japanese economy rapidly stagnated as calls for self-restraint in response to the spread of COVID-19 intensified following the issuance of the state of emergency declaration in April, and people refrained from going out and businesses from operating. Even after the declaration was lifted, behavior based on the new lifestyle, worsening corporate performance and employment conditions, and concerns about a second wave of infections have made the economic outlook even more uncertain.」

「On the other hand, in the second half, in addition to fluctuations in personal consumption caused by the consumption tax increase and the impact of foreign governments' trade policies on exports and production, the global spread of COVID-19 has had a significant impact on the global economy and financial markets, making the economic outlook even more uncertain.」

「Meanwhile, the economic outlook remains difficult to predict, as fluctuations in personal consumption due to the consumption-tax increase and developments in trade policies between foreign governments affect exports and production.」

「Meanwhile, conditions remain in which the increasingly pronounced slowdown in overseas economies and the trade policies of foreign governments make the economic outlook uncertain.」

「Meanwhile, conditions remain in which the slowdown in overseas economies and the trade policies of foreign governments make the economic outlook uncertain.」

「Although exports were weak in some areas due to trade disputes involving foreign governments and a slowdown in the global economy, economic activity overall remained solid as improvements in corporate earnings and the employment environment flowed through to capital investment and personal consumption.」

「Meanwhile, concern is mounting that trade issues between foreign governments and the global economic slowdown will affect the Japanese economy.」

「Meanwhile, the outlook for the economy remains uncertain due to the impact on Japan’s economy of protectionist trade policies adopted by foreign governments and a succession of natural disasters in various parts of Japan.」

「However, concerns remain about the impact of uncertainty in overseas economies and volatility in financial and capital markets, leaving the outlook uncertain.」

「During the fiscal year, Japan’s economy remained on a moderate recovery trend, with corporate earnings and employment continuing to improve against the backdrop of government economic policies and other factors. However, the outlook for the economy remained uncertain, as foreign exchange rates and share prices continued to be unstable amid developments in US policies and concerns about slower economic growth in China and emerging Asian economies.」

「However, uncertainty in the global economy remains high, and the outlook continues to be uncertain due to developments in policies under the new US administration, future political developments in EU countries, uncertainty in overseas economies and geopolitical risks related to the North Korea issue.」