Domestic and Overseas Economic Conditions and Capital Investment Trends

「中東情勢、米国の通商政策、ウクライナ等の地政学的リスクを背景に、引き続く物価上昇、円安是正を意識した為替相場の変動、日銀の利上げ観測に伴う金利上昇などを受けて、とりわけ中小企業にはコストの負担が重く、先行き不透明な状況のまま推移しております。」

「During the current consolidated fiscal year, the Japanese economy remained in an uncertain environment, with geopolitical risks involving the Middle East, US trade policy, Ukraine, and worsening Japan-China relations. In particular, the risk of stagnant economic activity increased due to unstable crude oil supplies. Concerns about a downside in economic conditions also arose from continued domestic price and long-term interest rate increases and foreign exchange fluctuations accompanying revisions to policy interest rates in various countries.」

「During the current interim consolidated accounting period, the Japanese economy remained in an uncertain environment, with concerns about a downside in economic conditions arising from fluctuations in foreign exchange rates accompanying revisions to policy interest rates in various countries, as well as continued domestic price and long-term interest rate increases, against a backdrop of geopolitical risks involving US trade policy, Ukraine, the Middle East, and worsening Japan-China relations.」

「The outlook for the fiscal year ending May 2026 anticipates construction demand for steel structures, mainly in urban areas, domestic infrastructure reinforcement under the National Resilience Basic Plan, logistics warehouses, and data centers. However, labor shortages caused by various structural factors are extending construction schedules. In addition to persistently high steel prices and rising labor and logistics costs, strong cost-push inflationary pressure is contributing to frequent revisions or cancellations of construction plans. The business environment is therefore expected to remain extremely challenging and uncertain.」

「The labor shortage has led to revisions of construction plans and delays to construction schedules, preventing construction demand from rising. In addition, the uncertain economic climate appears to be restraining capital investment, while persistently high procurement prices and various cost increases accompanying higher prices are beginning to affect earnings and profits.」

「The outlook for the fiscal year ending May 2025 is for solid demand for steel structure projects, mainly in urban areas, supported by domestic infrastructure reinforcement under the National Resilience Basic Plan, logistics warehouses, data centers, and other sustained domestic demand. However, the impact of the 2024 problem affecting the construction and transportation sectors, which began in April this year, and the structural labor shortage is affecting costs and construction schedule progress. Together with persistently high steel prices, rising energy prices, unstable foreign exchange rates, and rising long-term interest rates, these negative factors are expected to leave the business environment extremely uncertain.」

「During the third quarter of the current consolidated cumulative period, the Japanese economy continued on a gradual recovery trend toward the normalization of economic activity. However, the outlook remains uncertain due to rising long-term interest rates, energy prices affected by the Ukraine and Middle East situations and the yen's depreciation in foreign exchange markets, persistently high steel prices, China's economic slowdown, and the addition of US-China geopolitical risks to unstable semiconductor component supplies.」

「During the second quarter of the current consolidated cumulative period, the Japanese economy continued on a gradual recovery trend toward the normalization of economic activity. However, the outlook remains uncertain due to rising long-term interest rates, energy prices affected by the Ukraine and Middle East situations and the yen's depreciation in foreign exchange markets, persistently high steel prices, China's economic slowdown, and the addition of US-China geopolitical risks to unstable semiconductor component supplies.」

「During the first quarter of the current consolidated cumulative period, the Japanese economy continued on a recovery trend as the effects of COVID-19 weakened. However, the outlook remains uncertain due to rising long-term interest rates reflecting expectations of a revision to accommodative monetary policy, energy prices affected by the Ukraine situation and the yen's depreciation in foreign exchange markets, persistently high steel prices, concerns about an economic slowdown in China, and the addition of US-China geopolitical risks to unstable semiconductor component supplies.」

「The business environment is expected to remain uncertain, owing primarily to persistently long lead times for manufacturing components, including semiconductor components, soaring steel prices, and rising electricity charges.」

「During the third quarter of the current consolidated cumulative period, the Japanese economy continued on a gradual recovery trend toward the resumption of economic activity following the contraction caused by COVID-19. However, various adverse effects on economic conditions have become apparent, including the impact of geopolitical risks related to the Ukraine situation, stagnant production activity due to semiconductor component shortages, rapid and widespread price increases, tightening global monetary policy, and sharp foreign exchange rate fluctuations. The outlook therefore remains uncertain.」

「During the second quarter of the current consolidated cumulative period, the Japanese economy continued on a gradual recovery trend toward the resumption of economic activity following the contraction caused by COVID-19. However, various adverse effects on economic conditions have become apparent, including the impact of geopolitical risks related to the Ukraine situation, stagnant production activity due to semiconductor component shortages, rapid and widespread price increases, tightening global monetary policy, and sharp foreign exchange rate fluctuations. The outlook therefore remains uncertain.」

「During the first quarter of the current consolidated cumulative period, the Japanese economy continued on a gradual recovery trend toward the resumption of economic activity following the contraction caused by COVID-19. However, various adverse effects on economic conditions have become apparent, including the impact of geopolitical risks related to the Ukraine situation, stagnant production activity due to semiconductor component shortages, rapid and widespread price increases, and the yen's depreciation in foreign exchange markets. The outlook therefore remains uncertain.」

「The business environment is expected to remain extremely uncertain due to the expanding adverse effects on the economy, including the course of the COVID-19 pandemic, longer lead times for manufacturing components, particularly semiconductor components, higher steel prices and rising prices of necessities.」

「During the first nine months of the consolidated fiscal year, the economy was recovering as the government and private sector jointly resumed economic activity in stages and vaccinations became more widespread following the severe recession caused by COVID-19. However, adverse effects on production activity became apparent due to the emergence of geopolitical risks related to the Ukraine situation and shortages of certain manufacturing components, particularly semiconductor components, leaving the outlook uncertain.」

「While signs of recovery began to emerge as the government and private sector worked together to resume economic activity in stages and vaccination became more widespread following the severe recession caused by the global spread of COVID-19, adverse effects also became apparent in manufacturing, including production stagnation due to shortages of certain components, particularly semiconductor components. Conditions remained uncertain.」

「During the consolidated fiscal year, the Japanese economy remained in a severe recession caused by the global spread of COVID-19. Although the government and private sector sought jointly to resume economic activity, corporate production and capital investment remained weak, and the outlook for recovery continued to be uncertain.」

「The Group revised its assumptions regarding the duration of the impact of COVID-19, determining that its adverse effects on economic activity would continue through the following consolidated fiscal year while gradually diminishing, followed by a gradual recovery from the consolidated fiscal year after that.」

「During the first quarter of the consolidated fiscal year, the Japanese economy faced a severe recession due to the global spread of COVID-19. As the government and private sector sought to resume economic activity in stages, geopolitical risks such as tensions between the United States and China compounded the situation. Corporate production activity and capital investment remained stagnant, and the outlook for recovery continued to be uncertain.」

「The domestic and international economic environment deteriorated sharply due to the spread of COVID-19, leaving corporate capital investment extremely uncertain.」

「During the first nine months of the consolidated fiscal year, employment and income conditions were improving and the economy remained firm in response to the government's economic measures. However, downward pressure on the economy intensified as the spread of COVID-19 gradually began to constrain economic activity, in addition to US-China trade tensions and rising geopolitical risks, increasing uncertainty surrounding corporate capital investment.」

「During the first six months of the consolidated fiscal year, employment and income conditions were improving and the economy remained firm in response to the government's economic measures. However, economic uncertainty increased due to rising US-China trade tensions and geopolitical risks, leading to continued caution regarding corporate capital investment.」

「During the first quarter of the consolidated fiscal year, employment and income conditions were improving and the economy remained firm in response to the government's economic measures. However, economic uncertainty increased due to rising US-China trade tensions and geopolitical risks, leading to greater caution regarding corporate capital investment.」

「During the consolidated fiscal year, the Japanese economy remained firm. While caution spread regarding corporate earnings due to the US's protectionist trade and monetary policies and tensions in international geopolitical relations, corporate earnings and employment conditions were improving in response to the government's economic measures.」

「During the first nine months of the consolidated fiscal year, the Japanese economy remained firm. While caution spread regarding corporate earnings due to the US's protectionist trade and monetary policies and heightened tensions in international geopolitical relations, corporate earnings and employment conditions were improving in response to the government's economic measures.」

「During the first six months of the consolidated fiscal year, the Japanese economy remained firm. While caution spread regarding corporate earnings due to the US's protectionist trade and monetary policies, geopolitical factors and signs of rising crude oil prices, corporate earnings and employment conditions were improving in response to the government's economic measures.」

「During the first quarter of the consolidated fiscal year, the Japanese economy remained firm, with improvements in corporate earnings and employment conditions resulting from the government's economic measures, despite concerns about adverse effects on companies from geopolitical risks overseas and monetary policies in advanced economies.」

「During the consolidated fiscal year, the Japanese economy remained firm, supported by government and private-sector economic measures that improved corporate earnings and employment conditions. At the same time, concerns emerged about adverse effects on companies from fluctuations in share prices and foreign exchange rates resulting from geopolitical risks related to protectionism and monetary policies in advanced economies, and the economic outlook was becoming increasingly uncertain.」

「During the first nine months of the consolidated fiscal year, the economy remained firm as government and private-sector economic measures supported improvements in corporate earnings and employment conditions. However, labor shortages associated with the declining birthrate and aging population became more apparent, while geopolitical risks related to the North Korea issue and protectionism, as well as monetary policies in advanced economies, caused substantial fluctuations in share prices and foreign exchange rates. Concerns emerged about adverse effects on companies, and the economic outlook was becoming increasingly uncertain.」

「During the first six months of the consolidated fiscal year, the Japanese economy remained firm. Although geopolitical risks, including the North Korea issue, continued to make the economic outlook uncertain, improvements were seen in domestic corporate earnings and employment conditions, supported in part by the government's economic measures.」

「During the first quarter of the consolidated fiscal year, the Japanese economy remained firm, although the outlook continued to be uncertain due to heightened uncertainty in overseas economies and geopolitical risks related to North Korea. Improvements were seen in domestic corporate earnings and employment conditions.」

「The period progressed amid uncertain conditions. While signs of recovery were seen in some areas of domestic private consumption and exports and manufacturing production was becoming more active, uncertainty continued around the UK's withdrawal from the EU, uncertainty surrounding the new US administration and the slowdown in emerging Asian economies.」

「During the first nine months of the consolidated fiscal year, signs of recovery emerged in domestic private consumption and some exports, while manufacturing production was becoming more active amid a slowdown in China and other emerging economies. At the same time, political instability became more apparent, including the UK's withdrawal from the EU, policies of the new US administration and the impeachment of the South Korean president, leaving overall conditions uncertain.」

「During the first six months of the consolidated fiscal year, the Japanese economy was affected by the UK's withdrawal from the EU, the economic slowdown in China and other emerging economies, and the US presidential election. While uncertainty in overseas economies was increasing, the stronger yen and falling share prices in the domestic market had settled, leaving overall conditions uncertain.」

「During the first quarter of the consolidated fiscal year, the Japanese economy was affected by heightened uncertainty in overseas economies, including the UK's withdrawal from the EU, a stronger yen and falling share prices. Corporate business sentiment deteriorated and willingness to invest in capital equipment declined, leaving overall conditions uncertain.」

「Our Group’s business experiences recurring expansions and contractions in demand depending on domestic and international economic conditions. Most of our principal products, section steel processing machines and cold saws, are used in the construction and automotive industries. Accordingly, significant changes in capital investment trends in these industries could affect our Group’s operating performance and financial condition.」