Monetary policy, emerging-market economies and geopolitical risk

「During the interim consolidated accounting period, the global economy remained firm, led by the United States, with personal consumption and capital investment holding up well. However, the outlook remained uncertain against a backdrop of rising energy prices associated with heightened tensions in the Middle East and uncertainty surrounding U.S. trade policy.」

「総負債は10,131百万円となり、前連結会計年度末と比較し1,089百万円の減少となりました。これは、主としてその他流動負債の減少、短期借入金の減少等によるものです。」

「During the six-month interim consolidated accounting period, concerns about a slowdown in the global economy increased against a backdrop of heightened geopolitical risks and growing uncertainty over trade policy, and the economic recovery showed some signs of stalling, although the overall economy remained resilient. At the same time, downside risks to the economy, including a global slowdown resulting from US tariff policy, concerns about slower growth in China, and continuing geopolitical risks centered on the Middle East and Europe, raised concerns, and the outlook remained uncertain.」

「The outlook remained uncertain against a backdrop of persistently high global resource and energy costs. In China, exports of precision equipment and electric vehicles were strong, but domestic demand remained sluggish due to the prolonged property downturn and difficult employment conditions, and the economic outlook remained unpredictable.」

「During the nine-month period ended [the current third quarter], the global economy remained unpredictable due to soaring global resource and energy prices resulting from prolonged geopolitical risks, sharp fluctuations in foreign exchange rates, rising prices, and other factors.」

「During the three-month period ended [the current first quarter], consumption was expected to recover as restrictions on activity related to COVID-19 were eased. However, difficult business conditions continued due to rising geopolitical risks, the risk of an economic downturn resulting from their prolongation, and fluctuations in foreign exchange markets caused by the sharp depreciation of the yen.」

「During the current consolidated fiscal year, economic and social activity normalized mainly in developed countries as measures to contain COVID-19 were balanced with the easing of restrictions on economic activity. However, the outlook remained uncertain due to the effects of heightened geopolitical risks, globally elevated resource and energy prices, and deteriorating market conditions across the manufacturing sector.」

「During the nine-month period ended [the current third quarter], restrictions on activity were eased as the effects of COVID-19 diminished, and economic activity showed signs of recovery. However, the outlook remained uncertain due to heightened geopolitical risks, soaring raw material and resource prices, particularly energy prices, global shortages of materials and components, and the historically sharp depreciation of the yen.」

「During the first quarter of the current consolidated fiscal year, the Japanese and global economies were expected to recover as economic and social activity normalized through a balance between COVID-19 measures and the easing of restrictions on economic activity. However, difficult conditions continued due to growing geopolitical risks and volatility in foreign exchange markets caused by the rapid depreciation of the yen. In manufacturing, the outlook remained uncertain due to increasingly evident supply constraints and higher raw material and resource prices, as well as shortages of some manufacturing components, including semiconductor components.」

「The economy remained at a standstill due to the emergence and spread of new variants, growing geopolitical risks and supply chain disruptions, and the difficult situation continued. In manufacturing, the outlook remained uncertain due to the emergence of sharply higher crude oil and raw material prices and shortages of some manufacturing components, including semiconductor components.」

「In manufacturing, surging crude oil and raw material prices have become apparent, as have shortages of certain production components including semiconductor components, while the threat of COVID-19 continues to evolve without subsiding, leaving the outlook uncertain.」

「During the second quarter of the current consolidated fiscal year, the global economy was recovering as expectations for the normalization of economic activity grew, supported by rising COVID-19 vaccination rates and the effects of various policies implemented by governments around the world. In manufacturing, however, shortages of some components, including semiconductor components, began to affect production activity. The outlook remained uncertain, as concerns about power shortages in China and a renewed escalation of U.S.-China trade friction could not be dispelled.」

「During the three-month period ended [the current first quarter], the global economy remained unpredictable because waves of COVID-19 infections continued to occur intermittently and concerns about a recurrence of US-China trade friction could not be dispelled. Nevertheless, economic activity showed signs of recovery as governments introduced various policies and economic activity resumed following vaccinations.」

「During the third quarter of the current consolidated fiscal year, the global economy showed signs of recovery as a result of various policies introduced in response to the spread of COVID-19, but economic activity stagnated again due to repeated lockdowns following the resurgence of infections. In Japan, although signs of a gradual recovery emerged, the outlook remained difficult as the recovery in personal consumption stalled amid deteriorating employment and income conditions while infections continued to resurge intermittently. In contrast, economic activity resumed early in China, and the economy remained on a recovery track.」

「During the three-month period ended [the current first quarter], the global economy deteriorated rapidly and significantly as a result of the global spread of COVID-19. The Japanese economy also introduced economic measures, including cash payments to households and financial support for companies, to prevent a severe economic downturn. However, as there was no clear prospect of containing the spread of COVID-19, the outlook remained difficult to predict.」

「During the nine-month period ended [the current third quarter], the global economy remained uncertain due to prolonged US-China trade friction, the UK's withdrawal from the EU, and continued instability in the Middle East and East Asia. In Japan, weakness deepened, particularly in the manufacturing sector, with capital investment, production, and exports weakening amid the slowdown in the Chinese economy and the effects of unstable conditions overseas, making the outlook difficult to predict.」

「During the six-month period ended [the current second quarter], the global economy continued its overall moderate recovery, but uncertainty about the outlook increased due to the further intensification of US-China trade friction, unstable political conditions in Europe, and geopolitical risks in some regions. In Japan, the economy continued its moderate recovery on the back of improved employment and income conditions and a recovery in personal consumption. However, investment remained cautious because of uncertainty about the outlook, and attention continued to be required regarding the economic effects of the consumption tax increase from October and a series of natural disasters.」

「During the first quarter of the current consolidated fiscal year, the global economy continued to recover gradually overall, but uncertainty about the outlook increased due to the effects of intensifying U.S.-China trade friction, political instability in Europe and geopolitical risks in some regions. In Japan, the economy continued its gradual recovery as employment and income conditions improved and personal consumption recovered, but concerns about overseas conditions, including a growing slowdown in the Chinese economy, weakened capital investment, production and exports, leaving the economy at a standstill.」

「Although the operating environment surrounding the Group as a whole continued to recover gradually, it remained uncertain due to factors including the effects of expanding U.S.-China trade friction, political instability in Europe and geopolitical risks in some regions.」

「During the nine-month period ended [the current third quarter], the global economy remained in an uncertain environment due to the prolonged impact of trade friction stemming from US trade policy, unstable political conditions in Europe, and geopolitical risks in some regions, despite continuing its overall moderate recovery. In Japan, the economy continued its moderate recovery on the back of improved corporate earnings and employment and income conditions and a recovery in personal consumption. However, it weakened due to the effects of a series of natural disasters in various regions and concerns about overseas conditions, including the Chinese economy.」

「During the six-month period ended [the current second quarter], the global economy continued its overall moderate recovery, although concerns were growing over the effects of expanding trade friction stemming from US trade policy and geopolitical risks in some regions.」

「During the three-month period ended [the current first quarter], the global economy was affected by the rise of protectionism, particularly in the United States, and geopolitical risks in some regions, but continued its overall moderate recovery.」

「During the nine-month period ended [the current third quarter], the global economy remained generally firm despite geopolitical risks in some regions. In the United States, the economy was steadily recovering on the back of robust personal consumption and capital investment, although attention needed to be paid to future policy developments and their effects. In Europe, the economy was also on a moderate recovery trend, despite regional variations including the UK's withdrawal from the EU.」

「During the second quarter of the current consolidated fiscal year, the global economy was expected to continue its gradual recovery overall, despite geopolitical risks in some regions. In the United States, the economy remained on a recovery track, although attention needed to be paid to the effects of monetary policy normalization and the future direction of policy. In Europe, the economy was also on a gradual recovery track, although some weakness was evident amid growing uncertainty associated with the United Kingdom’s withdrawal from the EU. In China, the recovery was expected to continue for the time being, partly due to the effects of various policies.」

「During the first quarter of the current consolidated fiscal year, the global economy was expected to continue its gradual recovery overall. In the United States, the economy remained on a recovery track, although attention needed to be paid to the effects of monetary policy normalization and the future direction of policy. In Europe, the economy was also on a gradual recovery track, although some weakness was evident amid growing uncertainty associated with the United Kingdom’s withdrawal from the EU. In China, the recovery was expected to continue for the time being, partly due to the effects of various policies. In Japan, although attention needed to be paid to the effects of uncertainty in overseas economies and volatility in financial and capital markets, the economy was expected to continue its gradual recovery, supported by the effects of various policies amid continued improvements in corporate earnings, employment and income conditions, and a recovery in personal consumption.」

「In the United States, the economy continues to recover, although attention must be paid to the future policy direction of the new president and its potential effects. In Europe, the economy is also on a gradual recovery track, as the impact of the United Kingdom’s withdrawal from the EU on the global economy, which had been a source of concern, is expected to be limited. In China, the economy has shown signs of recovery, partly due to the effects of various policies, and consumption has continued to increase steadily. In Japan, although attention must be paid to the effects of uncertainty in overseas economies and volatility in financial and capital markets, the economy is expected to continue its gradual recovery, supported by the effects of various policies amid continued improvements in employment and income conditions.」

「In the United States, the economy continues to recover despite concerns about the effects of monetary policy normalization and the dollar exchange rate. In Europe, concerns about unemployment, price trends, and geopolitical risks have kept the economy to moderate growth. China is expected to achieve stable growth, although there is a risk of an economic downturn depending on developments in financial markets, including property prices and excessive debt.」

「Uncertainty remains regarding the effects of monetary policy in various countries, the outlook for economies in emerging Asian countries including China, oil price trends, and geopolitical risks.」