Uncertainty in the business environment due to yen appreciation and a slowdown in overseas economies

「世界経済に関しては、中東情勢は一時的に緊張が緩和したもののその後は混迷が継続しており、依然として先行き不透明な状況が続いています。」

「Meanwhile, the global economic outlook remained uncertain due to uncertainty arising from US trade policies and other factors, as well as soaring crude oil prices associated with rising tensions in the Middle East.」

「Meanwhile, the global economic outlook remains uncertain, with the impact of US trade policies visible in some industries, particularly the automobile industry.」

「Meanwhile, the outlook for the global economy remains uncertain, including concerns about the US economy due to the rising US unemployment rate and concerns about a slowdown in the Chinese economy due to its real estate slump.」

「Meanwhile, the global economy is expected to remain uncertain due to concerns about the outlook for the US economy amid a rising unemployment rate and slowing labor markets and personal consumption, concerns about a downturn in the Chinese economy resulting from the real estate slump, worsening geopolitical risks arising from Russia's war in Ukraine and the situation in the Middle East, fluctuations in resource prices and the outcome of the US presidential election.」

「During the cumulative second quarter under review, Japan's economy gradually recovered against a backdrop of resilient domestic demand following the reclassification of COVID-19 as a Class 5 infectious disease and the resumption of economic activity. However, the overseas economies remained uncertain due to concerns about an economic slowdown resulting from continued monetary tightening to contain inflation and weak global demand for semiconductors.」

「Meanwhile, the global economy remains uncertain due to growing concerns about a recession resulting from policy rate hikes in Europe and the United States, various price increases caused by globally higher energy prices following Russia's prolonged invasion of Ukraine, and changes to China's zero-COVID policy.」

「Meanwhile, the global economy remains uncertain due to a sharp slowdown in the US economy caused by monetary tightening, various price increases resulting from globally higher energy prices following Russia's prolonged invasion of Ukraine, a rapid depreciation of the yen due to differences between Japanese and US monetary policy, and downside risks to the Chinese economy resulting from the continuation of its zero-COVID policy.」

「Although signs of recovery were seen as the number of novel coronavirus cases declined and restrictions on economic activity were eased, the global economy remained uncertain due to soaring energy prices, slower growth resulting from China's lockdowns and growing concerns about a US recession caused by monetary tightening by the Federal Reserve.」

「Regarding the future business environment, economic activity is expected to gradually normalize as measures against COVID-19, including strengthening the healthcare delivery system and promoting vaccinations, progress, and the economy is expected to recover due to the effects of various economic policies. However, the environment is expected to remain uncertain due to soaring energy and food prices following Russia's invasion of Ukraine, heightened geopolitical risks, concerns about inflation in the United States and slower growth in the Chinese economy.」

「During the cumulative third quarter under review, personal consumption recovered following the lifting of the state of emergency at the end of September, and corporate earnings continued to improve. In its monthly economic report for December, the government revised its assessment of the underlying economic trend upward for the first time in 1 year and 5 months. However, the outlook remained uncertain due to the subsequent spread of the novel coronavirus driven by the Omicron variant, soaring raw material prices and transportation costs, concerns about inflation in the United States and slower growth in the Chinese economy.」

「Economic activity is expected to gradually normalize as restrictions on movement are eased, but concerns about a resurgence of COVID-19 infections remain, and Japan's economic outlook continues to be uncertain.」

「Meanwhile, as COVID-19 vaccinations progress, economic activity in the global economy is gradually resuming, particularly in Europe and the United States. However, infections are resurging in some countries and regions, and the outlook for the global economy remains uncertain.」

「Regarding the future business environment, economic activity is expected to normalize as measures to contain the novel coronavirus, including vaccine distribution and vaccination, progress, and the economy is expected to gradually improve, although this will take time. However, if the impact of the pandemic is prolonged or worsens due to the spread of infections from new variants in Japan or delays in vaccine distribution and vaccination, the Group's domestic product sales are expected to be affected by restraints or reductions in operating activities and delays in construction schedules.」

「During the cumulative third quarter under review, Japan's economy began to recover after deteriorating rapidly due to the impact of the novel coronavirus. However, as the end of the pandemic remained unforeseeable, the recovery in personal consumption remained at a low level, while capital investment remained in a severe condition, with companies postponing or cancelling investment plans due to deteriorating earnings and uncertainty about the economic outlook.」

「During the cumulative second quarter under review, Japan's economy remained in a severe condition as the spread of the novel coronavirus restricted personal consumption and corporate activity. However, following the lifting of the state of emergency, the economy has begun to recover as economic activity gradually resumed.」

「During the cumulative first quarter under review, the global economy deteriorated rapidly as economic activity stagnated due to severe travel restrictions, restrictions on residents' movement and closures of stores and other facilities in response to the spread of the novel coronavirus. Japan's economy also deteriorated rapidly, with corporate activity and personal consumption restricted by voluntary restraints on going out and requests for business closures following the declaration of a state of emergency to prevent the spread of the novel coronavirus. Negative growth is expected for the current fiscal year.」

「The global economy has also slowed sharply due to the prolonged US-China trade friction issue, the UK's EU withdrawal issue and the impact of the novel coronavirus pandemic. The economic environment is expected to remain uncertain and extremely challenging.」

「During the cumulative third quarter under review, corporate earnings remained solid, but Japan's economy weakened, particularly in the manufacturing sector, due to sluggish exports resulting from the slowdown in overseas economies. The outlook remained uncertain amid heightened geopolitical risks stemming from prolonged US-China trade friction and instability in the Middle East.」

「Furthermore, overseas, concerns about an economic slowdown in both the United States and China due to the prolonged US-China trade friction issue have left the outlook uncertain.」

「During the cumulative first quarter under review, Japan's economy weakened, particularly in the manufacturing sector, due to sluggish exports resulting from a slowdown in overseas economies and declining global IT demand. Overseas, the outlook remained uncertain as US-China trade friction appeared likely to continue, relations between the United States and the United Kingdom and Iran deteriorated over the Strait of Hormuz, and interest-rate cuts began to emerge in the United States, which had been viewed as an economically strong country.」

「However, the outlook remains uncertain due to the impact of escalating US-China trade friction, political turmoil in Europe and the United States, and volatility in the financial and capital markets.」

「During the cumulative second quarter under review, Japan's economy remained on a gradual recovery trend, supported by recovering corporate earnings and improving employment and income conditions. However, concerns about the impact of natural disasters such as the torrential rains in western Japan, escalating US-China trade friction and currency depreciation in emerging markets have left the outlook uncertain.」

「Meanwhile, overseas, concerns include the possibility that the US administration's protectionist trade policies could develop into international trade friction and the impact of US interest-rate increases, leaving the economic outlook uncertain.」

「Meanwhile, concerns remain about political risks in Europe, the North Korea issue, the protectionist economic policies of the Trump administration in the United States and the impact on emerging-market economies of US interest-rate hikes. The global economic environment is therefore expected to remain uncertain.」

「Although geopolitical risks relating to North Korea and the Middle East remain unresolved, corporate performance remained solid, with ordinary profit at a record-high level. Personal consumption also continued to recover gradually against a backdrop of improving employment and income conditions.」

「During the cumulative second quarter under review, Japan's economy faced concerns including growing geopolitical risks in European countries and North Korea. Domestically, however, personal consumption was gradually recovering against a backdrop of solid improvement in employment and income conditions.」

「During the cumulative first quarter under review, Japan's economy continued on a gradual recovery trend, with corporate earnings improving against a backdrop of the government's economic policies and the Bank of Japan's monetary easing, while employment and income conditions continued to improve. However, the outlook remained uncertain due to concerns about policies under the new US administration, developments in negotiations over the UK's withdrawal from the EU and the outlook for the situation in the Middle East.」

「Meanwhile, concerns remain about political risks in Europe following the UK's decision to leave the EU, geopolitical risks in East Asia and the impact of the protectionist economic policies of the new US administration, leaving the economic outlook uncertain.」

「During the cumulative third quarter under review, Japan's economy was gradually recovering, with employment and income conditions improving partly as a result of various government and Bank of Japan policies. However, the outlook remained uncertain amid concerns about the impact of slower growth in emerging-market economies, the UK's EU withdrawal issue and the protectionist trade policies of the new US administration.」

「Against this backdrop, Japan's economy remained sluggish during the cumulative second quarter under review. Although employment and income conditions showed signs of improvement as a result of the government's economic measures and the Bank of Japan's monetary policy, the outlook for the economy remained uncertain amid concerns about downside risks to emerging-market economies, particularly China, and the impact of the UK's decision to leave the EU.」

「Due in part to the UK's withdrawal from the EU, foreign exchange rates and share prices temporarily fluctuated significantly. Uncertainty continues across the global economy, including increased terrorism, slower growth in China and deteriorating economic conditions in emerging markets amid falling resource prices, raising concerns about the impact on Japan's manufacturing industry.」