A slowdown in the global economy, centered on China, and weakening consumer sentiment

「Although investment in data centers, particularly in the US, showed signs of becoming more active, the global economy remained uncertain because of US-China tensions, US tariff policy, and issues involving Venezuela and the Middle East.」

「Although investment in data centers, particularly in the US, showed signs of becoming more active, the global economy remained uncertain because of US-China tensions, US tariff policy, and issues involving Venezuela and the Middle East.」

「During the interim accounting period, the Nikkei Stock Average reached a new record high, and employment and income conditions improved in Japan. Capital investment in automation to address labor shortages was also expected to expand. However, international conditions became increasingly unstable because the Russian invasion of Ukraine remained prolonged, trade issues centered on the US continued, and the Palestinian issue persisted, leaving the outlook uncertain.」

「The end of the armed conflict in the Russia-Ukraine situation and the Middle East remains unforeseeable, and it is currently difficult to predict how policy shifts by the new US administration, including tariffs, will affect economic conditions. The outlook therefore remains uncertain.」

「During the interim accounting period, the Nikkei Stock Average reached a new record high, and a moderate economic recovery was expected to continue as employment and income conditions improved. However, the outlook remained uncertain because prolonged yen depreciation was driving inflation and financial and capital markets were volatile against a backdrop of unstable global conditions.」

「During the three months ended this quarter, Japan's economy showed a moderate recovery because personal consumption was recovering and inbound demand improved. However, the outlook remained uncertain because the prolonged Russian invasion of Ukraine, continuing geopolitical risks in the Middle East, and unstable overseas conditions persisted, while higher raw-material prices against a backdrop of yen depreciation pressured corporate earnings.」

「During the fiscal year, Japan's economy showed a moderate recovery as social and economic activity normalized further following the reclassification of COVID-19 under the Infectious Diseases Act. However, global economic activity showed signs of slowing because the Russia-Ukraine conflict remained prolonged, global inflation continued, and companies restrained investment in response to monetary tightening. Concerns about recession in China, the US, and Europe, tighter semiconductor export controls arising from US-China tensions, heightened geopolitical risks in the Middle East, and inflation caused by yen depreciation also persisted, leaving the outlook uncertain.」

「During the nine months ended this quarter, Japan's economy recovered moderately amid improving employment and income conditions and the effects of various policies. In contrast, the global economy remained uncertain, as the effects of monetary tightening and the slowdown in overseas economies continued to put downward pressure on manufacturing earnings.」

「During the six months ended this quarter, Japan's economy recovered moderately as the transition to living with COVID-19 accelerated and service consumption and inbound demand recovered. However, amid continued global monetary tightening, the slowdown in overseas economies put downward pressure on manufacturing earnings.」

「During the three months ended this quarter, Japan's economy improved as restrictions on activity to prevent the spread of COVID-19 were eased and inbound demand expanded, providing support particularly to personal services. However, soaring energy and raw-material prices continued to pressure corporate earnings.」

「During the nine months ended this quarter, the global economy recovered, particularly in the US and Europe, but the outlook remained uncertain as rising raw-material and energy prices associated with the worsening situation in Ukraine increased inflationary pressure. Japan's economy also showed signs of recovery as COVID-19 restrictions were eased and the global economy recovered, despite the impact of higher raw-material prices. However, supply and demand for semiconductors and electronic components remained tight, and delays in product deliveries continued to make the outlook unpredictable.」

「During the six months ended this quarter, Japan's economy was affected by shortages of raw materials, yen depreciation, and higher material prices, although it gradually showed signs of recovery as COVID-19 restrictions were eased and the global economy recovered. Overseas economies also recovered, particularly in the US and Europe, but the outlook became uncertain because energy supplies were tight and prices rose as the situation in Ukraine deteriorated.」

「During the three months ended this quarter, the impact of COVID-19 on Japan's economy had become more limited than before, but stagnation in economic activity and weak personal consumption continued for an extended period.」

「The spread of COVID-19 may affect the Company's production and sales by making it difficult to procure certain raw materials and by discouraging economic activity. Depending on how the situation develops, including a prolonged Russian invasion of Ukraine, the Company's ability to secure earnings may also be affected.」

「As vaccination against COVID-19 became more widespread, infections declined and signs of recovery emerged in economic activity. However, concerns about another resurgence of infections could not be completely dispelled, leaving the outlook uncertain. In addition, semiconductor and electronic-component supply and demand remained tight, causing delays in product deliveries, while prices of crude oil and other raw materials rose, leaving the outlook unpredictable.」

「During the six months ended this quarter, Japan's economy remained in a severe environment as social and economic activity continued to be restricted to prevent the spread of COVID-19. The economy also declined because restrictions on the delivery of materials were imposed in connection with traffic controls for the Olympics and Paralympics in the Kanto region, while corporate exports and production activity decreased. Overseas economies deteriorated as economic activity stagnated in countries around the world. Conditions remained uncertain because of unstable political developments abroad, including escalating US-China trade friction and turmoil in the Middle East.」

「The global resurgence of COVID-19 led to a difficult environment in which economic activity stagnated and personal consumption remained weak. However, signs of recovery emerged as various economic policies took effect and some economic indicators improved. Although economic recovery is expected from the effects of these policies and improvements overseas, uncertainty remains, including downside risks to domestic and overseas economies from another resurgence of infections.」

「The business environment surrounding the Group remained unprecedentedly severe as social and economic activity stagnated and economic deterioration continued because of the global spread of COVID-19. Although vaccine distribution was progressing, the outlook remained uncertain. Overseas economies were also in an unprecedentedly difficult situation because economic activity was repeatedly restricted and resumed as infections spread rapidly worldwide.」

「Although economic activity temporarily resumed after the lifting of the state of emergency in May 2020 and recent economic indicators began to improve, a third wave of COVID-19 infections emerged in November 2020, and there was no clear prospect for containment. Concerns remained that the negative impact on the global and Japanese economies would be prolonged.」

「During the six months ended this quarter, Japan's economy continued to face severe conditions as social and economic activity remained restricted to prevent the spread of COVID-19, reducing corporate exports and production. Overseas economies deteriorated rapidly as economic activity stagnated in countries around the world. Conditions remained uncertain because of unstable political developments abroad, including escalating US-China trade friction.」

「During the three months ended this quarter, Japan's economy suffered a sharp downturn because social and economic activity was restricted to prevent the spread of COVID-19. The impact of the consumption-tax increase also continued, and the business environment remained severe. Overseas economies also remained uncertain, with the global economy slowing sharply because of the pandemic, compounded by unstable political developments abroad, including escalating trade friction between the US and China.」

「The spread of COVID-19 has had a serious impact on the global economy, and the timing of its containment remains uncertain, leaving the situation unpredictable.」

「During the nine months ended this quarter, Japan's economy remained on a moderate recovery track, supported by expanding domestic corporate earnings, improving employment conditions, government measures to promote a productivity revolution and infrastructure development, and labor-saving capital investment to address labor shortages. However, concerns remained about the impact of US-China trade friction on domestic financial and capital markets and the impact of the consumption-tax increase on Japan's economy.」

「Overseas economies remained uncertain, and attention was required regarding the potential impact on the global economy of an escalation in US-China trade friction and deterioration in Japan-South Korea relations.」

「Overseas economies remained uncertain, and attention was required regarding the potential impact on the global economy of concerns about slower economic growth caused by trade friction between the US and China and the UK's Brexit issue.」

「Although uncertainty about the outlook persisted because of political changes in European countries, monetary policy developments, and escalating trade tensions between the US and China over US trade policy,」

「During the six months ended this quarter, Japan's economy remained on a moderate recovery track despite geopolitical risks, including escalating tensions with China over US trade policy and instability in the Middle East. Corporate earnings expanded, while capital investment and R&D investment increased to address labor shortages. Personal consumption and employment and income conditions also improved.」

「During the three months ended this quarter, Japan's economy remained firm despite geopolitical risks, including uncertainty in overseas economies and the situation surrounding North Korea. Domestic employment and corporate earnings improved, while domestic demand ahead of the 2020 Tokyo Olympics and inbound demand provided additional support.」

「Overseas economies remained unstable because of risk factors including various protectionist policies in the US, concerns about China's economic slowdown, and heightened tensions surrounding North Korea.」

「Overseas economies remained unstable because of risk factors including the implementation of various protectionist policies by the US, China's economic slowdown, and heightened tensions surrounding North Korea.」

「Overseas economies remained uncertain, as many destabilizing factors persisted, including political developments in the US and Europe and the geopolitical situation in the Middle East.」

「During the three months ended this quarter, Japan's economy gradually recovered, with exports driven by the recovery in overseas economies against a backdrop of various government and Bank of Japan policies and real GDP growth remaining positive. However, the outlook remained uncertain because of geopolitical risks, including political developments in the US and Europe and the situation in the Middle East.」

「Japan's economy during the fiscal year showed a moderate recovery supported by improving employment and income conditions. However, the outlook remained uncertain because of the slowdown in emerging-market economies, the UK's decision to leave the EU, and concerns about the policies of the new US administration.」

「During the first 3 quarters of the fiscal year, Japan's economy was on a gradual recovery path, but uncertainty in overseas conditions, including the UK's decision to leave the EU and the policy direction of US President-elect Trump, caused the yen to weaken sharply from November onward. Against this backdrop of uncertainty in Japan and abroad, companies remained cautious about capital investment. Although employment and income conditions continued to improve, consumer sentiment remained weak, with concerns about the future reinforcing a preference for thrift.」

「Uncertainty about the future remained high due to the slowdown in emerging-market economies and the yen's appreciation since the beginning of the year. Private-sector consumer sentiment remained weak, and the economy continued to stagnate.」

「The economy has remained sluggish amid a sense of stagnation, as consumer sentiment weakened against a backdrop of volatile foreign-exchange rates and stock prices since the beginning of the year, reflecting a slowdown in the global economy centered on China.」