Changes in domestic and overseas economic conditions and industry demand

「During the current interim consolidated accounting period, the global economy remained relatively firm, particularly in the United States, but the outlook remained uncertain due to rising energy and raw material prices amid escalating tensions in the Middle East, geopolitical risks remaining at high levels and the impact on supply chains.」

「Looking ahead, in addition to an international situation that is difficult to predict, concerns remain about fluctuations in energy prices arising from oil supply issues, higher raw material costs and the impact on supply chains. The business environment is expected to remain uncertain and highly unpredictable.」

「During the current interim consolidated accounting period, uncertainty increased in the global economy due to the impact of U.S.-China trade friction and tariff policies, and growth rates slowed across the major economies. Although inflation showed signs of easing in some regions, policy uncertainty remained, including uncertainty over U.S. tariff policies and the direction of monetary policy in various countries. Geopolitical risks, including the situation in Ukraine and tensions in the Middle East, also remained a concern, and the outlook is expected to remain difficult to predict.」

「Looking ahead, the weakness of the Chinese economy, the increasing multipolarity and instability of geopolitical risks, and continued instability in financial markets such as foreign exchange and share prices are expected to persist. In addition, concerns about a slowdown in the global economy stemming from the high-tariff policies of the United States are expected to intensify, making the outlook even more uncertain and unpredictable.」

「During the current interim consolidated accounting period, the global economy remained on a gradual recovery trend after passing the peak of inflation, but faced many challenges, including the weakness of the Chinese economy, expanding geopolitical risks and the risk of volatility in financial markets such as foreign exchange and share prices. Looking ahead, these challenges are expected to persist, while rising protectionism is raising concerns about the risk of economic fragmentation, and the situation is expected to become increasingly uncertain and difficult to predict.」

「During the cumulative first three quarters of the current fiscal year, the global economy maintained its recovery trend as socioeconomic activity progressed toward normalization from the COVID-19 pandemic, but the pace of recovery slowed as the effects of monetary tightening to curb inflation and geopolitical risks continued. Looking ahead, an economic slowdown is a concern due to factors including prolonged inflation, rising geopolitical risks and the weakness of the Chinese economy, and the situation is expected to remain difficult to predict.」

「Looking ahead, an economic slowdown is a concern due to factors including prolonged inflation, geopolitical risks compounded by the situation in the Middle East and the weakness of the Chinese economy. An unstable yen exchange rate also remains a factor that should be taken into consideration, and the situation is expected to remain difficult to predict.」

「During the cumulative first quarter of the current fiscal year, the global economy remained on a recovery trend as socioeconomic activity progressed toward normalization from the COVID-19 pandemic, but the pace of recovery slowed due in part to the impact of global monetary tightening. Looking ahead, as conditions shift from concerns about shortages of component supplies to concerns about a loss of demand momentum, monetary tightening, geopolitical risks and an unstable yen exchange rate are expected to persist, and the situation is expected to remain uncertain and difficult to predict.」

「Meanwhile, the outlook for the economy remains uncertain and difficult to predict due to supply chain disruptions, surging raw material and energy prices resulting from the prolonged invasion of Ukraine by Russia, rising interest rates aimed at curbing inflation, and sharp fluctuations in the yen exchange rate.」

「Meanwhile, the global economy is expected to remain uncertain and difficult to predict, as the war in Ukraine and elevated raw material prices persist, while concerns about recession due to global inflation and rising interest rates have intensified. In Japan, concerns also remain about the impact of sharp fluctuations in the yen exchange rate, and the situation is expected to remain uncertain and difficult to predict.」

「Meanwhile, the global economy remains uncertain and difficult to predict, as the Ukraine crisis, elevated raw material prices and ongoing supply chain disruptions persist, while concerns about recession due to rising global inflation and the resulting rapid monetary tightening have intensified further.」

「During the first quarter of the current consolidated fiscal year, the global economy remained on a recovery track as restrictions on movement were eased or lifted worldwide, although it was affected by China's zero-COVID policy. However, Russia's invasion of Ukraine, elevated raw material prices and supply chain disruptions continued, while concerns over an economic recession caused by rising global inflation and the resulting rapid monetary tightening intensified, leaving conditions persistently uncertain and unpredictable.」

「The global economy is expected to begin moving toward normalisation of socioeconomic activity as it emerges from the COVID-19 pandemic, but the business environment is expected to remain subject to rapid changes and difficult to predict due to the impact of Russia's invasion of Ukraine and economic sanctions imposed on Russia by various countries, the impact of China's zero-COVID policy, the impact of China's zero-COVID policy, and accelerating inflation.」

「During the third quarter of the current consolidated fiscal year, the global economy showed signs of recovery as vaccination programs to prevent the spread of COVID-19 progressed. However, semiconductor shortages and elevated raw material prices and logistics costs continued, while the rapid spread of COVID-19 variants, rising geopolitical risks and concerns over high inflation in the US left the economic outlook persistently uncertain and unpredictable.」

「As these activities recovered, semiconductor shortages caused by an imbalance between supply and demand and elevated raw material prices, logistics costs and other expenses continued, leaving the outlook uncertain and unpredictable.」

「During the first quarter of the current consolidated fiscal year, social and economic activity and production, which had stagnated, began to recover as vaccination programs to prevent the spread of COVID-19 progressed worldwide. However, the outlook remained uncertain due to the impact of renewed outbreaks in emerging economies and elsewhere caused by COVID-19 variants and the impact of tensions between the US and China.」

「Since December, COVID-19 infections have expanded rapidly due to the third wave, and there is still no indication of an end to the outbreak. The business environment therefore remains unpredictable.」

「The global economy recovered significantly as China was the first to resume economic activity. However, in other regions, there is still no clear prospect of the effects of the disease subsiding, while political conditions in various countries and trade issues between the United States and China have raised concerns, leaving the outlook uncertain.」

「During the first quarter of the current consolidated fiscal year, global economic activity rapidly stagnated due to the spread of COVID-19, and economic conditions deteriorated significantly. As emergency measures, governments implemented measures to prevent the spread of infection, including stay-at-home orders, travel restrictions and business shutdowns. Although signs of a gradual recovery emerged as the scale of the outbreak subsequently contracted, the outlook remained uncertain.」

「During the nine-month period ended in the third quarter, the Japanese economy was affected by a slowdown in the global economy, and domestic companies' earnings, particularly in the manufacturing sector, continued to decline. Overseas, the Chinese economy slowed further, mainly because of restrained capital investment, due to the impact of US-China trade friction, and concerns about a slowdown in the global economy, including the US and China, have increased further. In addition, tensions in the Middle East have continued to rise, and uncertainty about the outlook for the global situation remains unresolved.」

「Overseas, China's economy continued to slow, including through restrained capital investment, as US-China trade friction intensified, and concerns over a slowdown in the global economy, led by the US and China, increased further. In Europe, disruption surrounding the UK's withdrawal from the EU continued, while tensions in the Middle East also remained elevated, leaving the global situation persistently uncertain.」

「During the first quarter of the current consolidated fiscal year, Japan's economy appeared to remain resilient against a backdrop of improving corporate performance and the income environment. Overseas, however, concerns over a global economic slowdown heightened due to the impact of US-China trade friction, with a pronounced impact beginning to emerge in China's economy. Production and exports in Japan's manufacturing sector also showed signs of weakness. Meanwhile, disruption surrounding the UK's withdrawal from the EU continued in Europe, and tensions continued to rise in the Middle East, leaving the global situation persistently uncertain.」

「Although the US and Asia generally remained firm, concerns over trade friction between the US and China and an economic slowdown in the global economy, including China, intensified, leaving conditions uncertain.」

「Against this backdrop, crude oil prices remained elevated, so raw material costs continued to rise. Concerns also remained over downside risks from trade friction resulting from the US's protectionist trade policies, leaving conditions uncertain.」

「While economic conditions have remained favorable, crude oil prices remain elevated, and the global economy continues to face an uncertain outlook, including concerns over trade friction originating in the United States.」

「Japan's economy is expected to remain on a recovery track, while the US, Europe and Asia are also expected to perform steadily. However, numerous concerns remain, including US policy developments, overseas trade friction, associated foreign-exchange volatility and trends in crude oil prices, and the global economic outlook is expected to remain uncertain.」

「Overseas, the US economy remained firm and the European economy also moved toward recovery, but there were concerns that political and economic uncertainty abroad, including in the United States and North Korea, could affect the Japanese economy, leaving the outlook uncertain. Sales declined in the construction segment because demand for public- and private-sector renovation work decreased, while the civil engineering segment also had fewer large-scale projects.」

「The US economy remained firm and the European economy showed a gradual recovery, but concerns over the situation on the Korean Peninsula and increasing uncertainty surrounding the operation of the US administration left the outlook uncertain.」

「Overseas political conditions remained uncertain due to concerns about the impact on the global economy of political developments, including policies of the new US administration and the UK's EU withdrawal.」

「Overseas, the global economy, affected by the economic policies of the United States, the UK's EU withdrawal issue and slowing economic growth in emerging Asian countries, including China, is expected to remain uncertain and unpredictable, with the political situations of countries abroad also involved.」

「Overseas, the economy remained uncertain amid concerns over the continuing slowdown in emerging Asian economies, including China, the UK's EU withdrawal issue, and risks related to the new US administration's monetary and economic policies, as well as increasing uncertainty in the global economy.」

「Overseas, the US economy remained firm in terms of employment, personal consumption and corporate performance, while Europe showed signs of a gradual recovery, although political and economic instability related to the UK's withdrawal from the EU remained a risk. In Asia, China's economy continued to slow in both consumption and investment, while other Asian countries also showed signs of sluggish growth, leaving the outlook uncertain.」

「Overseas, the US economy remained firm, while financial markets in Europe were temporarily disrupted following the UK's decision to leave the European Union. The markets subsequently regained stability, but the situation remains highly uncertain depending on Europe's future response. In Asia, China's economic slowdown continues.」

「The Company may be affected by changes in demand in each industry, as well as changes in demand and economic conditions in each region.」