Slowdowns in Asian Emerging and Resource Economies, the Kumamoto Earthquake, and Foreign-Exchange Trends

「During the current interim consolidated fiscal period, Japan's economy showed a gradual recovery, including an increase in personal consumption partly as a result of government measures to address rising prices. However, continuing price increases stemming from the situation in the Middle East continued to affect personal consumption, and the uncertain outlook persisted.」

「Meanwhile, the risk of an economic downturn resulting from U.S. trade policy and the continued impact of inflation driven by the situation in the Middle East are still affecting personal consumption, and the outlook remains uncertain.」

「Although the economy has been on a gradual recovery trend, with signs of a recovery in personal consumption against a backdrop of improving employment and income conditions, downside risks from US trade policy and continuing price increases are still affecting personal consumption, and uncertainty about the outlook persists.」

「During the current interim consolidated accounting period, Japan’s economy was affected by soaring food prices and inflation, which dampened personal consumption. Uncertainty stemming from US trade and tariff policies also weighed on the economy, and the outlook remains uncertain.」

「During the six months of the current second quarter consolidated fiscal period, from 1 December 2023 to 31 May 2024, the Japanese economy was gradually recovering as economic activity moved toward normalization. However, personal consumption was being constrained by the weaker yen and rising prices, and uncertainty about the economic outlook had not been dispelled.」

「However, uncertainty remains high due to soaring raw-material and transport costs resulting from higher energy prices caused by the Russia-Ukraine issue and the situation in the Middle East, as well as yen depreciation.」

「During the nine-month period ended 31 December, the Japanese and global economies showed signs of recovery as the COVID-19 pandemic was reclassified as a Class 5 infectious disease, restrictions on activity were further eased, and economic activity moved toward normalization. However, rising raw material prices resulting from the prolonged Russia-Ukraine situation and accelerating global inflation have affected personal consumption, and the outlook for the economy remains uncertain.」

「During the cumulative second-quarter consolidated period under review, Japan's and the global economy were moving toward the normalisation of social and economic activity as COVID-19 cases were brought under control and restrictions were lifted. However, the outlook for the economy remains uncertain due to the impact of yen depreciation on foreign-exchange rates and rising prices for resources and other commodities resulting from the prolonged Russia-Ukraine situation.」

「Although the effects of COVID-19 have eased, the situation between Russia and Ukraine has become protracted, and the economic outlook remains uncertain due to the rapid depreciation of the yen.」

「However, the outlook remains uncertain due to soaring raw-material and transportation costs resulting from energy issues and other factors associated with the prolonged situation in Ukraine, as well as the yen's rapid depreciation.」

「During the six months ended the second quarter of the fiscal year under review, the Japanese and global economies were moving toward normalization of social and economic activity as the number of COVID-19 cases was brought under control and activity restrictions were eased. However, the outlook for the economy became increasingly uncertain due to exchange-rate volatility caused by the sharp depreciation of the yen and rising prices of resources and other commodities stemming from the situation in Russia and Ukraine.」

「With uncertainty stemming from the situation in Ukraine and other factors, the economic outlook remains unpredictable, amid rising raw material prices and other developments.」

「In Japan, signs of an economic recovery have emerged as new COVID-19 infections have been brought under control. Although some regions around the world are seeing increases in new COVID-19 infections, the global economy is generally showing signs of recovery. However, the outlook remains uncertain as worldwide inflation continues, owing to logistics-related problems and rising raw-material prices.」

「During the first three-quarter cumulative consolidated period, the economies of Japan and the rest of the world remained difficult in some areas due to the impact of COVID-19, but signs of recovery have emerged as vaccination rates have progressed and various policy measures have taken effect.」

「In the housing equipment-related industry, which is closely connected to the Group, there are positive factors such as increased investment in housing due to the impact of COVID-19 and the launch of the Green Housing Points system. However, negative factors have also emerged, including global logistics problems, soaring prices for materials such as steel sheets and lumber, and semiconductor supply shortages, resulting in an uncertain outlook.」

「The start of COVID-19 vaccinations in locations around the world has raised expectations for an economic recovery as infections decline. However, some regions are currently restricting economic activity because of the spread of variants, and an uncertain situation continues.」

「In Japan as well, a third wave of COVID-19 infections has been spreading since around November, and restrictions have been imposed on the Go To campaign, which began in earnest in the autumn, adversely affecting the economic recovery.」

「In Japan, the spread of COVID-19 infections accelerated again from July through August, raising concerns about adverse economic effects. However, the number of infections began to decline around the end of August, and the key issue is how much the economy will recover through economic measures such as the Go To campaign, which is about to enter full swing.」

「During the six months ended 30 September, the Japanese and global economies were in an extremely severe condition as economic activity was restricted in many parts of the world due to the global COVID-19 pandemic. In Japan, economic activity has gradually begun to recover since the state of emergency was lifted in the latter half of May, but conditions remain severe amid concerns about a second wave of infections.」

「During the current first-quarter consolidated cumulative period, the Japanese and global economies experienced a sharp global slowdown due to the spread worldwide of the COVID-19 pandemic, first identified in Wuhan, China, at the end of 2019, which has also had a significant adverse impact on Japan's domestic economy.」

「Natural disasters such as earthquakes, typhoons and heavy rain could cause significant damage to our facilities, or adversely affect sales and procurement if our customers or suppliers suffer damage. Such events could therefore affect our operating results.」

「The economic outlook is becoming increasingly uncertain, with various economic indicators showing signs of deterioration due to negative economic factors such as the expansion of additional tariffs resulting from US-China trade tensions and the escalating situation in the Middle East.」

「Economic uncertainty has been increasing, with various economic indicators showing a deteriorating trend because of negative economic factors such as the expansion of additional tariffs resulting from trade tensions between the United States and China and the escalating situation in Iran.」

「Concerns about a slowdown in the global economy have intensified due to various issues, including the slowdown in China's economy associated with the US-China trade war and difficult negotiations over the UK's withdrawal from the EU.」

「Although Japan’s economy during the consolidated fiscal year was recovering from the decline in economic activity caused by natural disasters, numerous factors emerged that raised concerns about the future, including the consumption tax increase scheduled for October 2019, downturns in the U.S. and Chinese economies caused by U.S.-China tensions, deteriorating relations with South Korea, slowing economic growth in the euro area, slowing growth in emerging economies due to falling resource prices, and a sharp decline in share prices in the stock market.」

「However, the outlook remains uncertain, as the company faces risk factors that could adversely affect the economy, including an intensification of the trade war, particularly between the United States and China, the effects of a succession of natural disasters, and higher resource prices resulting from the expected resumption of US economic sanctions against Iran.」

「Although a gradual economic recovery is expected to continue going forward, supported by the solid employment situation and other factors, the situation requires attention to downside risks to the economy, including the release of data showing a slowdown in business sentiment in the Bank of Japan's most recent Tankan survey.」

「The situation requires attention to downside risks to the economy, including a slowdown in the global economy resulting from the United States' protectionist trade policies.」

「However, continued attention is required regarding the outlook for economies in emerging countries, including China, and fluctuations in financial markets, including foreign exchange markets.」

「However, continued attention is required regarding the economic outlook in emerging economies, including China, and fluctuations in financial markets, including foreign exchange.」

「However, continued attention is required regarding uncertainty surrounding future US policies, the economic outlook for emerging economies including China, and volatility in financial markets, including foreign exchange markets.」

「However, the situation requires attention to future economic trends, including uncertainty regarding the outlook for the economies of emerging Asian countries, including China, and the policies of the new U.S. president.」

「The situation continues to require close monitoring of economic and foreign exchange trends, including the effects on the global economy arising from the economic slowdown in emerging Asian and resource-producing economies, including China, and developments in the US presidential election.」

「The Company remains in a situation where it must closely monitor economic and foreign-exchange trends, due to the economic slowdown in emerging Asian countries, including China, and resource-rich countries, as well as the economic impact of the Kumamoto earthquake and other factors.」