Impact of persistent deflation, Brexit and policies of the new U.S. administration
First written in FY2017-Q2. 11 of 34 entries say "Worsened", first in FY2019-Q3. Latest entry: FY2026.
The whole theme swung hardest in 2022: 106 of 135 companies on the "Worse" side.
- FY2026External-environment risks were updated to include international developments such as the situation in the Middle East.Annual report
「During the fiscal year under review, Japan’s economy showed a gradual recovery in domestic conditions, supported by a recovery in personal consumption and capital investment. However, the outlook for the economy remained uncertain due to rising labor costs caused by a structural labor shortage, soaring raw-material prices and energy costs, and increasing instability in international developments, including the situation in the Middle East.」
The description shifted from concerns over a slowdown in the global economy due to US tariff policy in the previous fiscal year to increasing instability in international developments, including the situation in the Middle East, as a new source of uncertainty. Labor shortages and rising labor, raw-material and energy costs continue. - FY2026-H1RestatedAnnual report
「During the interim consolidated accounting period under review, Japan’s economy showed a gradual recovery in domestic conditions, supported by a recovery in personal consumption and capital investment. However, the outlook for the economy remained uncertain due to rising labor costs amid a structural labor shortage, soaring raw-material prices and energy costs, and uncertainty in the global economy due to US tariff policy.」
While describing a gradual recovery in domestic economic conditions, labor shortages and rising labor costs, soaring raw-material and energy costs, and uncertainty in the global economy due to US tariff policy continue to be identified as external-environment concerns. - FY2025Added concerns over a slowdown in the global economy due to US tariff policy.Annual report
「During the fiscal year under review, Japan’s economy showed a gradual recovery in domestic conditions, supported by increased inbound demand and a recovery in personal consumption and capital investment. However, the outlook for the economy remained uncertain due to rising labor costs amid a structural labor shortage, soaring raw-material prices and energy costs, and concerns over a slowdown in the global economy due to US tariff policy.」
The description of external-environment risks was updated to include labor shortages, rising labor, raw-material and energy costs, and concerns over a slowdown in the global economy due to US tariff policy. - FY2025-H1The focus shifted to labor costs, raw-material costs and US-China trade friction.Annual report
「During the interim consolidated accounting period under review, Japan’s economy showed a gradual recovery in domestic conditions, supported by increased inbound demand and a recovery in personal consumption and capital investment. However, the outlook for the economy remained uncertain due to rising labor costs amid a structural labor shortage, soaring raw-material prices and energy costs, and concerns over a renewed escalation in US-China trade friction.」
While describing factors supporting the recovery in domestic economic conditions, rising labor costs due to the structural labor shortage, soaring raw-material and energy costs, and a renewed escalation in US-China trade friction are identified as external-environment concerns. - FY2024-Q3WorsenedAnnual report
「During the cumulative third quarter under review, Japan’s economy showed a gradual recovery in domestic conditions, supported by the easing of various restrictions related to COVID-19 and the recovery in inbound demand. However, the outlook for the economy remained uncertain due to persistently high raw-material prices and energy costs, slower growth in overseas economies and the effects of the Noto Peninsula Earthquake of 1 January 2024.」
While describing factors supporting the recovery in domestic economic conditions, the effects of the 2024 Noto Peninsula Earthquake were added as a new source of uncertainty, in addition to the existing concerns over persistently high raw-material and energy costs and slower growth in overseas economies. - FY2024-Q2Additional domestic economic recovery factors and continuing external risks.Annual report
「During the cumulative second quarter under review, Japan’s economy showed a gradual recovery in domestic conditions, supported by the easing of various restrictions related to COVID-19 and the recovery in inbound demand. However, the outlook for the economy remained uncertain due to persistently high raw-material prices and energy costs and slower growth in overseas economies.」
While describing an improvement in domestic economic conditions due to the easing of restrictions and the recovery in inbound demand, persistently high raw-material and energy costs and slower growth in overseas economies remain concerns. - FY2024-Q1The focus of external-environment risks shifted to raw-material and energy costs and slower growth in overseas economies.Annual report
「During the cumulative first quarter under review, Japan’s economy remained uncertain, despite the easing of various restrictions related to COVID-19 and progress toward normalizing socioeconomic activity, due to persistently high raw-material prices and energy costs and slower growth in overseas economies.」
While describing the easing of pandemic-related restrictions and the normalization of economic activity, the focus of external-environment concerns has shifted from the previous concerns over inflation and rising labor costs to persistently high raw-material prices and energy costs and slower growth in overseas economies. - FY2023Focus shifted from easing pandemic effects to rising prices and labor costsAnnual report
「During the fiscal year under review, Japan’s economy remained in a challenging environment, with inflation driven by soaring resource and energy prices and rising labor costs. However, the economy generally remained on a recovery track as various restrictions related to COVID-19 were eased and socioeconomic activity continued to normalize.」
While references to restrictions related to the pandemic and limits on economic activity have shifted toward easing, increases in resource and energy prices, general prices and labor costs are identified as new key concerns. - FY2023-Q3Focus shifted from easing pandemic effects to a downturn in overseas economiesAnnual report
「During the nine months ended Q3, the Japanese economy showed signs of a gradual recovery as COVID-19 subsided and various activity restrictions were eased in stages. However, the outlook remained uncertain due to rising raw material and energy prices and a tendency toward weaker overseas economies.」
While the recovery associated with the subsiding pandemic and easing of activity restrictions is described, rising raw material and energy prices and the weakening trend in overseas economies are identified as new concerns. - FY2023-Q2WorsenedAnnual report
「During the six months ended Q2, the Japanese economy remained uncertain. Although restrictions on activities related to COVID-19 were eased and economic activity showed signs of recovery, the rapid depreciation of the yen, soaring raw material prices, and longer lead times for semiconductors and electronic components remained concerns.」
While the easing of restrictions related to COVID-19 and the recovery in economic activity are described, the rapid depreciation of the yen, soaring raw material prices, and longer lead times for semiconductors and electronic components are explicitly identified as concerns. - FY2023-Q1Focus shifted from easing pandemic effects to inflation and yen depreciation risksAnnual report
「During the three months ended Q1, the Japanese economy remained uncertain despite an easing in the spread of COVID-19, due to soaring raw material and energy prices and the rapid depreciation of the yen.」
While the impact of the spread of COVID-19 is described as having eased, soaring raw material and energy prices and the rapid depreciation of the yen are identified as new external concerns. - FY2022WorsenedAnnual report
「During the fiscal year, the Japanese economy remained in difficult conditions. Although some signs of recovery were seen despite the continuing impact of COVID-19, the economy was affected by the renewed spread of infections due to new variants, shortages of semiconductors and raw materials, and soaring resource and energy prices.」
The renewed spread of infections, shortages of semiconductors and raw materials, and soaring resource and energy prices are explicitly identified as external concerns. - FY2022-Q3WorsenedAnnual report
「During the nine months ended Q3, the Japanese economy showed signs of a gradual recovery while the impact of COVID-19 continued. However, the outlook remained uncertain due to rising raw material prices, supply shortages and the situation in Ukraine.」
In addition to the previously cited pandemic and shortages of raw material supplies, the situation in Ukraine is explicitly identified as a concern. Uncertainty over the outlook, including rising raw material prices and supply shortages, continues to be described. - FY2022-Q2WorsenedAnnual report
「During the six months ended Q2, the Japanese economy remained uncertain. Although some recovery was seen as economic measures were implemented and vaccinations progressed, the renewed spread of infections due to new variants, shortages and soaring prices of raw materials, and other factors continued to weigh on the outlook.」
In addition to the renewed spread of infections, shortages and soaring prices of raw materials are explicitly identified as new concerns, and uncertainty over the economic outlook continues. - FY2022-Q1WorsenedAnnual report
「During the three months ended Q1, the Japanese economy remained uncertain despite signs of a partial recovery, as restrictions on economic activity continued due to the renewed spread of COVID-19 and shortages of raw materials including semiconductors emerged.」
In addition to restrictions on economic activity due to the renewed spread of COVID-19, shortages of raw materials including semiconductors are identified as a new concern. - FY2021RestatedAnnual report
「During the fiscal year, the Japanese economy remained in a difficult environment due to the impact of COVID-19. Some exports and production activity, particularly in manufacturing, recovered as overseas economies improved. However, some industries were strongly affected by restrictions on economic activity to prevent the spread of infections, leading to increasing divergence in performance among industries. With no sign that the pandemic was coming to an end, the outlook for economic activity remained extremely uncertain.」
The difficult economic environment caused by COVID-19 and the extremely uncertain outlook as the pandemic had not ended are reaffirmed. - FY2021-Q3RestatedAnnual report
「During the nine months ended Q3, the Japanese economy remained in difficult conditions due to restrictions on corporate activity and personal life associated with the spread of COVID-19. Although signs of a partial recovery emerged in manufacturing as overseas economies recovered, the outlook remained uncertain amid a renewed spread of infections.」
The difficult economic environment caused by restrictions on corporate activity and personal life and uncertainty over the outlook due to the renewed spread of infections continue to be described. Signs of a partial recovery in manufacturing are also noted. - FY2021-Q2WorsenedAnnual report
「During the six months ended Q2, the Japanese economy remained in difficult conditions due to the spread of COVID-19. Although some signs of recovery were seen, the outlook for economic activity remained extremely uncertain due to the renewed spread of infections.」
In addition to the difficult economic conditions and uncertainty described in the previous quarter, the outlook for economic activity is described as extremely uncertain due to the renewed spread of infections. - FY2021-Q1RestatedAnnual report
「During the three months ended Q1, the Japanese economy remained in difficult conditions due to the spread of COVID-19. Although some signs of recovery were seen, the economy remained uncertain.」
The difficult economic conditions and uncertainty over the outlook caused by the spread of COVID-19 continue to be described. - FY2020RestatedAnnual report
「During the fiscal year, the Japanese economy continued on a gradual recovery path, with employment and income conditions and capital investment remaining solid amid concerns over a slowdown in overseas economies due to U.S.-China trade friction. However, the economy deteriorated rapidly from the second half of the fiscal year due to the spread of COVID-19, resulting in difficult conditions.」
Concerns over a slowdown in overseas economies due to U.S.-China trade friction and the sharp deterioration in economic conditions in the second half of the fiscal year due to COVID-19 continue to be described. - FY2020-Q3WorsenedAnnual report
「During the nine months ended Q3, employment and income conditions remained firm and the economy had been on a gradual recovery path, but it deteriorated rapidly due to the spread of COVID-19 and was in an extremely difficult situation. The outlook also became uncertain.」
In addition to the previous risk of a global economic slowdown, the description states that the economy deteriorated rapidly due to the spread of COVID-19, increasing uncertainty over the outlook. - FY2020-Q2RestatedAnnual report
「During the six months ended Q2, the Japanese economy remained on a gradual recovery path, supported by solid employment and income conditions. However, the global economy faced a risk of slowing due to factors including U.S.-China trade friction and Brexit, and the outlook for economic activity remained uncertain.」
The risk of a global economic slowdown due to U.S.-China trade friction and Brexit, as well as uncertainty over the outlook for economic activity, continued to be described. - FY2019-Q3WorsenedAnnual report
「During the nine months ended Q3, the Japanese economy continued on a gradual upward trend overall, supported by improvements in corporate earnings and employment and income conditions. Meanwhile, the risk of a slowdown in overseas economies including China and Europe increased, and weakness emerged in some exports and production, particularly in the automotive-related business, heightening uncertainty over the outlook.」
The focus shifted from the previous description centered on U.S.-China trade friction to the increasing risk of a slowdown in overseas economies including China and Europe, as well as weakness in exports and production, with greater emphasis on uncertainty over the outlook. - FY2019-Q2Global economic slowdown risk explicitly identifiedAnnual report
「During the six months ended Q2, the Japanese economy remained on a gradual recovery path comparable to the Izanami boom, supported by strong corporate earnings, with increases in capital investment and improvements in employment and income conditions. However, concerns over the risk of a global economic slowdown due to factors including U.S.-China trade friction continued.」
The risk of a global economic slowdown caused by U.S.-China trade friction is identified as an external concern. - FY2019-Q1Focus of external risks changed to U.S.-China trade friction and the Middle East situationAnnual report
「During the three months ended Q1, the Japanese economy remained on a gradual recovery path, with capital investment increasing and personal consumption improving against a backdrop of solid corporate earnings. However, there was a risk of a slight downturn in economic activity due to the impact of U.S.-China trade friction and the situation in the Middle East.」
The risk of an economic downturn due to U.S.-China trade friction and the situation in the Middle East is identified as an external concern, replacing the previous factors including higher raw material costs and labor shortages. No new business or other risks or material changes are reported. - FY2018Focus of external-environment risks changed to higher raw material costs and labor shortagesAnnual report
「During the fiscal year, the Japanese economy continued to expand gradually overall. Corporate earnings improved against a backdrop of strong overseas economies, and capital investment and personal consumption remained solid, despite negative factors including higher raw material costs and labor shortages.」
The description shifted from the previous references to deflation, Brexit, policies of the new U.S. administration and geopolitical risks to higher raw material costs and labor shortages as negative factors. - FY2018-Q3RestatedAnnual report
「There were no newly arising business or other risks during the cumulative consolidated period for the third quarter. In addition, there were no material changes to the business and other risks described in the annual securities report for the preceding fiscal year.」
No new business or other risks were identified, and no material changes were reported in the risks described for the previous fiscal year. The economic environment is described as including an expanding global economy, strong corporate earnings and solid capital investment. - FY2018-Q2SoftenedAnnual report
「During the six months ended Q2, the Japanese economy performed well amid an expanding global economy led by growth in the U.S. economy, with strong corporate earnings, solid capital investment and signs of a recovery in personal consumption as employment conditions improved.」
There is no specific reference to the geopolitical risks described in the previous quarter. The global economy, corporate earnings, capital investment, employment and personal consumption are described as favorable conditions. Meanwhile, no material changes are identified in business and other risks. - FY2018-Q1Focus of external risks changed to geopolitical risksAnnual report
「During the three months ended Q1, the Japanese economy remained on a gradual recovery path amid concerns over rising geopolitical risks, supported by the effects of Abenomics and the recovery of overseas economies, with corporate earnings expanding and employment conditions improving.」
Instead of the previously stated references to deflation, Brexit and policies of the new U.S. administration, rising geopolitical risks are identified as a concern. - FY2017-Q3RestatedAnnual report
「During the nine months ended Q3, the Japanese economy had not yet escaped deflation, but corporate earnings and employment and income conditions continued to improve against a backdrop of solid overseas economies, and the economy was expanding, as announced by the Bank of Japan. Meanwhile, the outlook remained uncertain due to factors including the impact of Brexit and policies of the new U.S. administration.」
The failure to escape deflation and the impact of Brexit and policies of the new U.S. administration continued to be identified as sources of uncertainty in the external environment. - FY2017-Q2First statedAnnual report
「Against this backdrop, the Company's consolidated net sales for the second quarter cumulative period were ¥39,940 million, up 15.3% year on year. In terms of profit and loss, profitability improved substantially, particularly in the mechatronics systems and agricultural equipment businesses, resulting in operating profit of ¥2,923 million, up 87.1%, ordinary profit of ¥3,298 million, up 107.0%, and quarterly profit attributable to owners of the parent of ¥2,252 million, up 114.6%.」
Although the economy was on a gradual recovery path, deflation had not ended. The impact of Brexit and policies of the new U.S. administration was identified as an external factor requiring close monitoring.