Downside risks to economic conditions from crude oil prices, a slowdown in emerging markets, and fluctuations in foreign exchange rates and stock prices

「During the cumulative consolidated second quarter period under review, Japan's economy has been recovering moderately, supported by improvements in employment and income conditions and the government's economic measures. However, concerns remain over the prolonged geopolitical risks arising from the situation in the Middle East, as well as the effects of rising prices and volatility in financial markets, and the outlook for the economy therefore remains highly uncertain.」

「Regarding the general state of the Japanese economy, the economy is recovering gradually due to improvements in employment and income conditions and the government's economic measures. However, the impact on the global and Japanese economies remains extremely uncertain because inflation continues as energy and raw material prices remain elevated, alongside developments in US trade policy and geopolitical risks.」

「The economy is recovering moderately due to improvements in employment and income conditions and government economic measures, but the outlook for the global and Japanese economies remains highly uncertain due to continued inflation caused by persistently high energy and raw material prices, as well as the impact of developments in U.S. trade policy and geopolitical risks.」

「During the interim consolidated accounting period, personal consumption remained relatively firm, but capital investment slowed against the backdrop of declining exports caused by higher tariffs and deteriorating corporate earnings. The economic outlook remained highly uncertain due to the impact of US trade policy and other factors.」

「Regarding the general state of the Japanese economy, domestic demand such as consumption and capital investment had led a gradual recovery. However, the impact of external factors, including developments in the US and Chinese economies and uncertainty surrounding policy management such as tariffs, made the effects on the global and Japanese economies extremely unclear.」

「On the other hand, the construction market faced extremely strong supply constraints due to the impact of the 2024 problem, labor shortages, and surging raw material prices, and quantitative conditions remained extremely difficult.」

「However, the risk of a further economic deterioration is small, and although statistical indicators for the construction market vary, the market as a whole remains firm. We therefore expect the severity of the operating environment to ease gradually.」

「Regarding the general state of the Japanese economy, domestic demand such as consumption and capital investment led a gradual recovery in fiscal 2023. However, based on recent economic statistics and the economic outlook, the economy appears to have stagnated.」

「During the third quarter cumulative period, the Japanese economy was recovering gradually, led by domestic demand such as consumption and capital investment. We expect domestic demand to recover as imported inflation eases with the shift away from the trend of yen depreciation and nominal wages rise toward next spring, but believe that attention must be paid to downside risks to the Japanese economy.」

「During the second quarter cumulative period, the Japanese economy showed a gradual recovery trend as restrictions on activity related to COVID-19 were eased and economic activity normalized. However, conditions remained uncertain due to the prolonged situation in Ukraine, persistently high resource and raw material prices, and rising prices caused by the depreciation of the yen.」

「Although the economy showed a gradual recovery trend as restrictions on activity related to COVID-19 were eased and economic activity normalized, conditions remained uncertain due to the prolonged situation in Ukraine and elevated raw material and energy prices.」

「During the third quarter cumulative period, the Japanese economy slowed due to the summer resurgence of COVID-19 but is recovering, led by domestic demand such as personal consumption and capital investment. Overseas, although inflation appears to have peaked, a recession caused by interest rate hikes is expected. In addition, conditions remain subject to numerous downside risks, including supply problems and price increases for energy and food resulting from Russia's invasion of Ukraine and developments in the Chinese economy. We believe that strong vigilance against downside risks to the Japanese economy is required for the time being.」

「During the second quarter cumulative period, the Japanese economy was recovering, led by domestic demand such as personal consumption and capital investment. However, the outlook remained uncertain due to a slowdown caused by the summer resurgence of COVID-19 and continued increases in energy and food prices. Overseas, downside risks were mounting, including high inflation, concerns about recession caused by interest rate hikes to contain inflation, supply problems and price increases for energy and food resulting from Russia's invasion of Ukraine, and concerns about stagnation in the Chinese economy. We believe that strong vigilance against downside risks to the Japanese economy is required for the time being.」

「During the first quarter cumulative period, the Japanese economy was recovering, led by a recovery in services consumption as COVID-19 infections became relatively contained. However, the outlook remained uncertain due to downside risks, including concerns about an economic slowdown caused by continued increases in energy and food prices, declining household purchasing power, and weak consumer sentiment.」

「Regarding the outlook for fiscal 2022, we basically expect the economy to remain on a recovery trend. However, the outlook is expected to remain highly uncertain due to concerns about the impact of Russia's invasion of Ukraine on the global economy, energy prices, material prices, food prices, and other areas, as well as the significant possibility of new COVID-19 variants emerging.」

「During the third quarter cumulative period, the Japanese economy saw periods of recurring COVID-19 resurgences, while the spread of vaccinations temporarily helped bring infections under control. However, conditions remained unpredictable, with infections resurging in some overseas regions and new variants being identified, and economic conditions remained uncertain.」

「The overseas economy remained on a strong recovery trend, and robust exports supported the Japanese economy. In addition, corporate capital investment also turned toward recovery, and we estimate that the economy remained on a recovery trend despite the severe spread of COVID-19.」

「During the first quarter cumulative period, the Japanese economy remained in a very difficult situation, particularly in personal consumption, due to the resurgence of COVID-19 infections. However, exports were strong against the backdrop of a robust overseas economy, and the economy as a whole appears to have remained on a recovery trend.」

「Regarding the outlook for fiscal 2021, we expect the Japanese economy to recover on a fundamental basis, although it may fluctuate depending on the spread of COVID-19, given that vaccination programs are apparently progressing smoothly overseas ahead of Japan and overseas demand remains firm. On the other hand, there are concerns that sluggish personal consumption and the economic downturn may persist due to deterioration in domestic employment conditions and other factors.」

「Economic indicators have begun to recover after bottoming in the first quarter, but the recovery has been gradual relative to the sharp economic decline, and we estimate that it will take a considerable amount of time for the economy to recover fully.」

「Economic indicators have begun to recover after bottoming in the first quarter, but the recovery has been gradual relative to the sharp decline, and we estimate that it will take a considerable amount of time for the economy to recover fully.」

「During the first quarter cumulative period, the Japanese economy deteriorated sharply as economic activity was significantly restricted by the global spread of COVID-19. Japan also entered an unprecedented situation, including the issuance of a state of emergency.」

「In 2020, the impact of the COVID-19 pandemic rapidly intensified, causing an extremely severe blow to the economy, while the outlook became completely unforeseeable.」

「Although there are signs that external demand has bottomed out and domestic demand remains firm, making a further deterioration of the economy unlikely, we expect the economy to remain at a low level for the time being.」

「During the second quarter cumulative period, the Japanese economy remained stagnant, as initially expected by the Company. There was also a possibility that signs of an economic slowdown had intensified recently, and we recognize that the economy was performing below our initial expectations. Overseas, uncertainty increased as external demand slowed further due to the slowdown in the Chinese economy stemming from escalating US-China trade friction and the UK's withdrawal from the EU, making the outlook even more uncertain.」

「During the first quarter cumulative period, the Japanese economy remained stagnant, as initially expected by the Company. There was also a possibility that signs of an economic slowdown had intensified recently, and we recognize that the economy was performing below our initial expectations. Overseas, uncertainty increased as the impact of US macroeconomic policy on international financial markets intensified and external demand slowed due to escalating US-China trade friction, making the outlook even more uncertain.」

「Although we remained alert to downside risks to the economy in the second half of the fiscal year, the actual economy performed well below our initial expectations.」

「On the other hand, downside risks to the global economy, including the US-China trade war, remained substantial, and conditions involving the economy and the operating environment continued to be highly uncertain.」

「During the second quarter cumulative period, the Japanese economy remained on a gradual recovery trend, as it had in the previous fiscal year, against the backdrop of improving corporate earnings and employment conditions. At the same time, concerns remained that major shocks could affect the global economy, including an escalation of the US-China trade war, a slowdown in the US and European economies due to US and European monetary policy, and capital outflows from emerging markets. The operating environment therefore remained uncertain.」

「During the first quarter cumulative period, the Japanese economy remained on a gradual recovery trend, as it had in the previous fiscal year, against the backdrop of improving corporate earnings and employment conditions. However, concerns about an economic downturn overseas, including intensifying trade friction and rising crude oil prices, persisted, requiring a cautious view of the outlook for the operating environment.」

「During the fiscal year, the Japanese economy remained on a gradual recovery trend against the backdrop of improving corporate performance and employment conditions. Overseas, however, the economic outlook remained uncertain due to concerns about US monetary policy, the political situation in Europe, and geopolitical risks.」

「The operating environment in Japan is expected to remain uncertain, as growth is likely to be constrained by slowing productivity growth and a declining working-age population, while the economy will also be affected by progress in the growth strategy.」

「During the second quarter cumulative period, the Japanese economy continued to recover gradually as corporate earnings and employment conditions improved. However, risks remain, including the impact of increasing uncertainty in overseas political and economic developments, such as US policy direction and tensions among East Asian countries, as well as volatility in financial and capital markets. Close attention must therefore be paid to downside risks to the economic outlook.」

「During the first quarter cumulative period, the Japanese economy showed signs of a gradual recovery as corporate earnings and employment conditions continued to improve. However, the operating environment remained uncertain due to risk factors including the policy direction of the new US administration and political developments in Europe.」

「During the fiscal year, the Japanese economy remained on a gradual recovery trend as employment conditions improved and corporate earnings and household income continued to recover. However, the outlook for the economy remained uncertain, with foreign exchange and stock markets experiencing substantial volatility due to the UK's withdrawal from the EU and the policy direction of the new US administration.」

「The Japanese economy is expected to remain in an uncertain operating environment, as concerns about an economic slowdown in emerging markets and continued instability in resource prices remain potential downside factors.」

「During the second quarter cumulative period, the Japanese economy continued to show signs of a gradual recovery as employment and income conditions improved against the backdrop of the government's economic measures and other factors. However, the economy faced various downside risks, including concerns about an economic downturn caused by slowing growth in emerging and resource-producing countries, geopolitical risks, and the outcome of the UK's referendum on leaving the EU. The operating environment remained uncertain, with foreign exchange rates becoming unstable.」

「During the first quarter cumulative period, the Japanese economy showed signs of a gradual recovery against the backdrop of the government's economic measures and monetary policy. However, the operating environment remained uncertain, with foreign exchange rates and share prices becoming unstable amid risks of an economic downturn caused by sluggish crude oil prices and slowing growth in emerging markets.」