Increasing uncertainty in the business environment due to a slowdown in the Chinese economy, a stronger yen, falling share prices and sluggish personal consumption

「Meanwhile, uncertainty about the outlook persists due to developments in U.S. trade policy, the impact of foreign-exchange fluctuations, and sustained inflation, as well as the prolonged situation in Ukraine and worsening conditions in the Middle East toward the fiscal year-end, which have driven up crude oil and other energy and resource prices.」

「Meanwhile, uncertainty about the outlook persists due to developments in U.S. trade policy, the impact of foreign-exchange fluctuations, and sustained inflation, as well as the prolonged situation in Ukraine and worsening conditions in the Middle East toward the fiscal year-end, which have driven up crude oil and other energy and resource prices.」

「During the interim consolidated accounting period, Japan's economy continued to recover gradually, supported by improvements in employment and income conditions and solid inbound demand. However, uncertainty about the outlook persisted due to persistently high raw-material and energy prices, the impact of sustained inflation on personal consumption, and concerns about U.S. trade policy.」

「Meanwhile, uncertainty about the outlook persists due to heightened geopolitical risks, including the situation in the Middle East, sustained inflation caused by globally soaring resource prices, and foreign-exchange fluctuations.」

「Meanwhile, uncertainty remains due to instability in the international situation, persistently high resource and raw-material prices, inflation caused by the weaker yen, and concerns about the outlook for the Chinese economy.」

「During the first quarter of the current consolidated fiscal year, Japan's economy continued to recover gradually, as the classification of COVID-19 was changed from Category 2 to Category 5, equivalent to influenza, on 8 May, leading to increased movement of people and inbound demand. However, the outlook remained uncertain because of surging raw material and energy prices, mounting inflationary pressure and the risk of recession in Europe and the United States.」

「During the cumulative third quarter of the fiscal year, Japan's economy showed signs of normalizing as restrictions on activity related to COVID-19 were eased. However, uncertainty about the outlook persisted due to the rapid depreciation of the yen and higher prices resulting from soaring raw-material costs.」

「During the cumulative second quarter of the fiscal year, Japan's economy showed signs of recovery as restrictions on economic activity were eased under policies aimed at living with COVID-19. However, uncertainty about the outlook persisted as soaring resource prices and the rapid depreciation of the yen intensified inflationary pressures.」

「In addition to the emergence of new variants, the outlook has become uncertain because of surging resource prices resulting from the prolonged situation in Ukraine, difficulties procuring various materials including semiconductors, and the rapid depreciation of the yen.」

「During the fiscal year, Japan's economy entered a period of stagnation in corporate and personal consumption activity as the spread of COVID-19, which had appeared to subside temporarily, led to the nationwide reintroduction of priority preventive measures.」

「During the cumulative third quarter of the fiscal year, economic activity gradually normalized and showed signs of recovery following the full lifting of the state of emergency. However, uncertainty remained due to the global semiconductor shortage, growing concerns about global inflation against the backdrop of soaring crude oil prices, and the spread of COVID-19 variants.」

「During the cumulative first quarter of the fiscal year, Japan's economy remained in difficult conditions as the third state of emergency was declared amid the spread of COVID-19.」

「During the cumulative first quarter of the fiscal year, Japan's economy deteriorated rapidly due to the global COVID-19 pandemic. Although social and economic activity has been gradually stepped up while measures are taken to prevent the spread of infection, the outbreak has not yet subsided, and severe conditions are expected to continue for the time being.」

「During the fiscal year, the global economy contracted sharply due to U.S.-China trade friction, geopolitical risks in various countries, and, from February onward, lockdowns and calls for people to refrain from going out to contain the spread of COVID-19.」

「Although the impact of the slowdown in overseas economies is expected to persist for the time being and domestic demand has recently declined due to the consumption tax increase and natural disasters, the positive income-to-spending cycle is expected to continue, supported by proactive government spending, and domestic demand is expected to resume an upward trend.」

「During the cumulative second quarter of the fiscal year, Japan's economy continued to recover gradually as corporate earnings and employment conditions improved. However, the outlook remained uncertain due to uncertainty overseas, including the prolonged U.S.-China trade friction and the UK's EU withdrawal issue.」

「During the cumulative first quarter of the fiscal year, Japan's economy maintained a moderate expansionary trend, supported by solid domestic demand, although the slowdown in overseas economies affected exports and production. Meanwhile, overseas economies remained uncertain, with corporate sentiment deteriorating further as trade friction and geopolitical tensions intensified.」

「China and Europe show signs of slowing, while the impact of U.S. macroeconomic policy on international financial markets, developments in the UK's EU withdrawal negotiations and their impact, and other geopolitical risks are expected to leave considerable uncertainty about the outlook for overseas economies.」

「Overseas economies are generally expected to continue growing steadily, but uncertainty is expected to persist due to protectionist developments, including U.S.-China trade friction, and their impact, trends in emerging-market and resource-producing economies, including the effects of falling crude oil prices, and geopolitical risks such as developments in the UK's EU withdrawal negotiations and their impact, all of which could broadly affect domestic and overseas economies.」

「The global economy is expected to continue growing steadily, with exports on an upward trend, but uncertainty about the outlook persists due to downside risks from trade friction involving the U.S. and China and financial market volatility.」

「During the cumulative first quarter of the fiscal year, Japan's economy continued to show improvement, with corporate earnings and employment conditions improving and personal consumption beginning to recover. However, the outlook for the global economy remained uncertain amid uncertainty over political developments and concerns about protectionism and trade friction.」

「During the cumulative third quarter of the fiscal year, Japan's economy continued to expand, supported by continued moderate growth in overseas economies, highly accommodative financial conditions, and the government's previous economic measures. However, geopolitical risks, including the conduct of U.S. economic policy and its impact on international financial markets and developments in the UK's negotiations to leave the EU and their impact, mean that uncertainty about the outlook remains.」

「During the cumulative second quarter of the fiscal year, Japan's economy continued on a gradual recovery trend, supported by improving corporate earnings. However, uncertainty about the economic outlook persisted due to the policies of the future U.S. administration, geopolitical risks centered on East Asia, and uncertainty in emerging-market economies, including China.」

「At pachinko halls, which are our group's main customers, some positive activity can be seen. Overall, however, we recognize that the outlook remains uncertain, amid declining pachinko participation due to the diversification of leisure activities, the established prevalence of low-denomination play, and consideration of measures to address gambling addiction following the enactment and implementation at the end of last year of the Act on Promotion of Development of Specified Integrated Resort Districts (IR Promotion Act).」

「During the fiscal year, Japan's economy remained on a gradual recovery trend, with corporate earnings and employment conditions continuing to improve. However, financial and equity markets remained unstable due to the slowdown in emerging markets, including China, geopolitical risks in Europe and the Middle East, the UK's withdrawal from the EU, and developments in the policies of the new U.S. administration, leaving the outlook uncertain.」

「During the cumulative third quarter of the fiscal year, Japan's economy remained on a gradual recovery trend, with corporate earnings and employment conditions continuing to improve. However, financial and equity markets remained unstable amid concerns over an economic slowdown in emerging markets, including China, mixed expectations for and concerns about the policies of the new U.S. administration, and concerns about the impact of the UK's withdrawal from the EU, leaving the outlook uncertain.」

「In the pachinko industry, which is the Group's customer base, the operating environment for pachinko halls remains difficult due to a decline in the pachinko-playing population resulting from the diversification of entertainment, the entrenchment of low-price pachinko operations, responses to the consumption tax increase, and the replacement of high-payout machines following new gaming-machine regulations.」

「Uncertainty remains about the outlook, reflecting concerns over an economic downturn in emerging markets due to the slowdown in the Chinese economy and falling crude oil prices, concerns over disruption to the global economy from geopolitical risks, the recent trend toward a stronger yen and lower share prices, and weak personal consumption.」