Economic Slowdown in China and Asia and Instability in Resource Prices

「Uncertainty remained about the outlook due to persistently high raw material and energy prices, the yen's depreciation and growing political and economic uncertainty overseas, among other factors.」

「Looking ahead at the business environment surrounding the Group, economic sentiment is expected to continue recovering gradually, supported by economic policies in Japan and other countries. Globally, however, unstable conditions are expected to continue due to the impact of US tariff policy, the prolonged situation in Ukraine and the situation in the Middle East.」

「Regarding the outlook, economic sentiment is expected to continue recovering gradually as a result of economic policies in major countries. Globally, however, unstable conditions are expected to persist due to the impact of U.S. trade policy and the prolonged situations in Ukraine and the Middle East, among others.」

「Although the US economy remained firm, concerns arose over the impact of tariff policy following the formation of a new administration in the US, continuing geopolitical risks resulting from the situation in Ukraine and heightened tensions in the Middle East, and the risk of weaker economic activity and steel demand caused by stagnation in China's economy. The uncertain outlook continued.」

「Although the US economy remained firm, the global economy continued to face an uncertain outlook amid ongoing geopolitical risks resulting from the prolonged situation in Ukraine and heightened tensions in the Middle East, as well as concerns over a deterioration in the balance of steel supply and demand caused by stagnation in China's economy.」

「The global economy is also showing movement toward the normalization of economic activity, but concerns remain over the risk of weaker economic activity and steel demand resulting from higher prices for raw materials, energy, transportation and other goods due to the prolonged situation in Ukraine, as well as risks such as supply chain disruptions caused by climate change and natural disasters, growing protectionism worldwide and the possibility of a collapse in China's real estate bubble. The uncertain outlook is expected to continue.」

「The global economy is also showing movement toward the normalization of economic activity, but concerns remain over the risk of weaker economic activity and steel demand resulting from higher prices for raw materials, energy, transportation and other goods due to the prolonged situation in Ukraine, as well as risks such as supply chain disruptions caused by climate change and natural disasters, growing protectionism worldwide and the possibility of a collapse in China's real estate bubble. The uncertain outlook is expected to continue.」

「The global economy is also showing resilient economic conditions. However, concerns remain over the risk of an economic slowdown and weaker steel demand resulting from persistently high prices for raw materials and energy due to the prolonged situation in Ukraine, continued inflation including higher transportation costs, high inflation and prolonged monetary tightening by central banks worldwide, as well as risks such as growing protectionism worldwide and fluctuations in China's steel supply and demand. The uncertain outlook is expected to continue.」

「Concerns remain over the risk of weaker economic activity and steel demand resulting from persistently high prices for raw materials and energy due to the prolonged situation in Ukraine, continued inflation including higher transportation costs, and high inflation, as well as risks such as growing protectionism worldwide and the possibility of a collapse in China's real estate bubble. The uncertain outlook is expected to continue.」

「Concerns remain over the risk of weaker economic activity and steel demand resulting from higher prices for raw materials, energy, transportation and other goods due to the prolonged situation in Ukraine and high inflation, as well as risks such as the renewed spread of COVID-19 variants, supply chain restrictions caused by lockdowns, growing protectionism worldwide and the possibility of a collapse in China's real estate bubble.」

「During the six-month period ended 30 September 2022 (1 April 2022 to 30 September 2022), Japan's economy gradually showed signs of normalization in domestic economic activity, although the impact of the COVID-19 pandemic continued. However, the situation is expected to remain difficult due to the further depreciation of the yen and rising prices. The global economy is also showing movement toward recovery from the downturn and normalization of economic activity, but concerns remain over the risk of weaker economic activity and steel demand resulting from higher prices for raw materials, energy, transportation and other goods due to the prolonged situation in Ukraine, as well as risks such as the renewed spread of COVID-19 variants, supply chain restrictions caused by lockdowns, growing protectionism worldwide and the possibility of a collapse in China's real estate bubble. The uncertain outlook is expected to continue.」

「The global economy is also showing signs of recovery from the downturn and movement toward the normalization of economic activity. However, concerns remain over the risk of weaker economic activity and steel demand resulting from higher prices for raw materials, energy, transportation and other goods due to the prolonged situation in Ukraine, as well as risks such as a renewed spread of infectious diseases, growing protectionism worldwide and the possibility of a collapse in China's real estate bubble. The uncertain outlook is therefore expected to continue.」

「Although the global economy is showing signs of recovery from the deterioration caused by the spread of the infectious disease, unstable conditions are expected to persist due to the possibility of a collapse in China’s property bubble, soaring energy prices, rising global protectionism, and downside risks to economic activity and steel demand resulting from Russia’s invasion of Ukraine in late February 2022.」

「Although the global economy is showing signs of recovery from the deterioration caused by the spread of the infectious disease, unstable conditions are expected to persist due to the possibility of a collapse in China’s property bubble, soaring crude oil prices, rising global protectionism, and increased geopolitical risks related to the Ukraine issue, creating downside risks to economic activity and steel demand.」

「The extension and reissuance of states of emergency due to the spread of variant strains, the impact of US-China trade friction and semiconductor shortages on the automotive sector, and the risk of price volatility from sharp increases in resource prices and logistics costs remain concerns. Accordingly, uncertain conditions are expected to persist.」

「During the cumulative first quarter (1 April 2021 to 30 June 2021), Japan’s economy remained weak because the end of the novel coronavirus infection (the infectious disease) was not yet in sight, although recovery continued, particularly in manufacturing sectors such as automobiles. Overseas economies also improved in the US and Europe due to progress in vaccinations and additional economic measures, while China recovered, led by infrastructure investment and exports. Although the pace varied by country, economies were generally on a recovery trend. However, the extension and reissuance of states of emergency due to the spread of variant strains, the impact of US-China trade friction and semiconductor shortages on the automotive sector, and the risk of price volatility from sharp increases in resource prices and logistics costs mean that uncertain conditions are expected to persist.」

「Although the Chinese economy is recovering steadily, unstable conditions are expected to persist globally due to the spread of the infectious disease worldwide, rising global protectionism, geopolitical risks and downside risks to economic activity and steel demand.」

「During the cumulative second quarter (1 April 2020 to 30 September 2020), Japan’s economy deteriorated rapidly due to the spread of the novel coronavirus infection (the infectious disease). Although economic activity stagnated under the state of emergency, some signs of recovery subsequently emerged. However, given concerns about a resurgence of infections, difficult conditions are expected to persist for the time being.」

「Global crude steel production from January to June 2020 also declined 6.0% year on year to 873.13 million tonnes.」

「During the consolidated fiscal year, Japan’s economy faced uncertain prospects as manufacturing sentiment stagnated against a backdrop of sluggish exports due to US-China trade friction, together with slower growth in China and the UK’s EU withdrawal issue. In the latter half of the year, economic activity was constrained by the global outbreak of the novel coronavirus, resulting in a rapid deterioration in economic conditions.」

「During the cumulative third quarter (1 April 2019 to 31 December 2019), Japan’s economy showed deteriorating sentiment, with weakness persisting mainly in exports and production due to slowing capital investment in manufacturing and the slowdown in overseas economies, despite improvements in employment and income conditions. Overseas, the US economy was supported by firm personal consumption, although signs of weakness emerged in capital investment. In addition to economic slowing in Europe and ASEAN, personal consumption and production in China remained weak and the economy slowed. Against this backdrop, unstable conditions, including US-China trade friction, the UK’s EU withdrawal, geopolitical risks related to the situation in the Middle East, and trends in crude oil prices and foreign exchange rates, are expected to persist.」

「During the cumulative second quarter, Japan’s economy remained on a moderate recovery trend as employment and income conditions improved, although sentiment in the manufacturing sector deteriorated. Overseas, personal consumption in the US continued to recover against a backdrop of favorable income conditions, but uncertainty is expected to persist due to deterioration in manufacturing sentiment, downward pressure from US-China trade friction and stagnation in the Chinese economy, the UK’s EU withdrawal issue in Europe, and geopolitical risks in the Middle East and on the Korean Peninsula.」

「Overseas, the prolonged US-China trade negotiations have made signs of stagnation in China’s economy more pronounced, while the US has introduced export controls in high-tech fields, creating uncertainty over future demand in industries such as communications equipment and semiconductors. In addition, the UK’s EU withdrawal issue and rising geopolitical risks in the Middle East and on the Korean Peninsula mean that uncertain conditions are expected to persist for some time.」

「During the consolidated fiscal year, Japan’s economy continued on a moderate recovery trend, supported by improving corporate earnings, capital investment and income conditions, as well as firm demand related to the Tokyo Olympics. Overseas, however, the outlook remained uncertain due to the impact of US protectionist trade policies on the global economy, the UK’s EU withdrawal issue and the slowdown in the Chinese economy.」

「Overseas, the US economy remains resilient, led by personal consumption, but the outlook is uncertain amid US-China trade friction. The Chinese economy remains weak, raising concerns about the resulting impact on the global economy as a whole.」

「Overseas, economies remain generally resilient, particularly in the US, but conditions remain uncertain due to the protectionist policies of the current US administration and concerns surrounding the Middle East and the Korean Peninsula.」

「In Japan, a moderate recovery is expected to continue as corporate earnings and employment conditions improve. However, the outlook is expected to remain uncertain due to the emergence of trade issues arising from the protectionist policies of the Trump administration in the US, the UK’s decision to leave the EU and refugee issues in Europe, and rising geopolitical risks in the Middle East and on the Korean Peninsula.」

「Overseas, signs of economic recovery are evident, supported mainly by stable employment conditions in the US. However, the outlook remains uncertain due to increasing instability in international affairs, rising crude oil prices and other factors.」

「Overseas, signs of moderate economic expansion are evident, particularly in the US and Europe. However, the outlook remains uncertain due to rising geopolitical risks worldwide and the effects of tighter environmental regulations in China.」

「Overseas, the US economy remains generally firm as employment conditions improve, but the outlook remains uncertain due to political risks in the US and Europe and economic slowing in China and emerging Asian economies.」

「Overseas, the US economy remains firm on the strength of personal consumption and employment conditions. However, the business impact of protectionist moves centered in the US and Europe, rising geopolitical risks and political instability centered in the Middle East and on the Korean Peninsula, and other factors have left the environment surrounding Japan challenging.」

「Overseas, the outlook remains uncertain as economic stagnation in emerging markets, particularly in Asia, the UK’s decision to leave the EU, and developments surrounding the launch of the new US administration intersect.」

「Overseas, the outlook remains uncertain due to downside risks in emerging-market economies, particularly in Asia, and the impact of the UK’s decision to leave the EU, among other factors.」

「Overseas, personal consumption in the US and Europe remains firm, but the outlook remains uncertain due in part to concerns about economic slowing in emerging markets.」

「Although the US and Europe continue to show signs of recovery, economic growth in China and other Asian countries continues to slow, while resource prices remain volatile. Overall, economic conditions therefore remain uncertain.」