Stagnation in imports, exports and production due to an economic slowdown in Asia and other factors

「一方で、物価上昇や人手不足に加え、ウクライナ紛争や米国およびイスラエルによるイラン攻撃に端を発した中東情勢の緊迫化を背景とした原材料・エネルギー価格の高止まり、金融資本市場の変動や米国の通商政策を巡る動向の影響等から、景気の先行きは依然として不透明な状況が続いております。」

「During the current interim consolidated accounting period, there has been no emergence of any of the major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies among the matters concerning the business and financial condition described in this interim report, nor any significant change in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」

「The economic outlook remained uncertain due to continuing inflation, labor shortages, volatility in financial and capital markets, concerns about a slowdown in overseas economies, and the impact of developments in U.S. trade policy.」

「During the current interim consolidated accounting period, there has been no emergence of any of the major risks that management recognizes as potentially having a material effect on the financial position, operating results or cash flows of the consolidated companies among the matters concerning the business and financial condition described in this interim report, nor any significant change in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」

「During the consolidated fiscal year, economic activity normalized and vitality gradually returned as the economy moved beyond the COVID-19 pandemic, restoring a moderate recovery trend. However, the outlook remained uncertain due to high energy and raw material prices, inflation, slowing overseas economies including China, the prolonged Russia-Ukraine situation, and developments in the Middle East.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」

「During the consolidated fiscal year, the gradual easing of restrictions on activity associated with COVID-19 accelerated the normalization of social and economic activity, and private consumption began to show signs of recovery. However, the outlook for the economy remained uncertain due to sharp increases in resource and energy prices caused by the conflict in Ukraine and the yen's depreciation resulting from global monetary tightening.」

「In the machine tools manufacturing business, market shifts in the automotive manufacturing industry resulting from the global transition toward decarbonization, supply chain disruptions and soaring prices have combined to keep the outlook for existing clients and others uncertain.」

「During the consolidated fiscal year, corporate sentiment showed signs of improvement as vaccination progressed and restrictions on activity were eased, despite the continued impact of COVID-19. However, difficult conditions persisted due to the emergence of new variants, rising geopolitical risks, and higher energy prices.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「Although the economic recovery continued even as COVID-19, which had appeared to be moving toward containment, shifted to a third wave of infections from late autumn, the number of infections continued to rise and uncertainty about the economic outlook increased further.」

「During the cumulative second-quarter period, Japan's economy remained in a difficult situation due to the impact of COVID-19. However, signs of recovery emerged in domestic production and exports, while overseas GDP also showed a trend toward improvement, and the recovery trend was expected to continue.」

「During the cumulative first-quarter period, Japan's economy remained in a rapidly deteriorating condition due to the impact of COVID-19 from early spring. After the government's lifting of the state of emergency, personal consumption showed some signs of recovery and further improvement was expected. However, conditions suggesting a second wave of infections continued, and the economic outlook remained unpredictable.」

「During the consolidated fiscal year, Japan's economy deteriorated substantially. GDP growth was already significantly more negative than in the previous year due to the consumption tax increase and typhoons, and the economy was further affected by the global slowdown associated with the spread of COVID-19.」

「During the cumulative third-quarter period, exports remained weak, while some weakness also emerged in production and capital investment. Corporate sentiment, particularly in manufacturing, continued to become more cautious.」

「During the cumulative second-quarter period, corporate earnings remained at a high level, supported by resilient domestic demand. However, weakness was evident mainly in exports against a backdrop of weak external demand, leaving concern about the economic outlook.」

「During the consolidated fiscal year, declines in exports and production, particularly to China, reduced earnings in the manufacturing sector. The slowdown in external demand has increased uncertainty about the outlook for the domestic economy.」

「During the first three months of the consolidated fiscal year, there were no material changes concerning matters described in the quarterly securities report that could materially affect investors' decisions, or to the business and other risks described in the securities report for the previous fiscal year.」

「However, most past economic expansions have broken down due to overseas factors, and it will remain necessary to closely monitor U.S. trade policy and developments in China and Russia.」

「During the cumulative third-quarter period, Japan's economy showed gradual improvement in some areas, including domestic corporate earnings and employment. However, the economic slowdown in Asia and weakness in Europe and the United States weighed on conditions, leaving the overall outlook uncertain.」

「During the cumulative second-quarter period, Japan's economy showed signs of improvement in corporate earnings and employment from the first half of the period. However, the economy remained generally weak, as exports, imports and production continued to trend sideways, partly due to the economic slowdown in Asia.」