Economic Slowdowns in Japan and Overseas and Downside Risk to Capital Investment

「Against the backdrop of heightened tensions in the Middle East, an uncertain outlook is expected to persist, with concerns over persistently high raw material and energy prices, particularly disruptions to oil-related logistics and shortages of petroleum-derived products.」

「Against the backdrop of the protracted situation in Ukraine and the situation in the Middle East, uncertainty remained regarding such factors as higher raw material and energy prices resulting from the ongoing depreciation of the yen, as well as concerns about the impact of US trade policy on markets and other areas.」

「The outlook remained uncertain amid continued high raw material and energy prices associated with the prolonged situations involving Ukraine and the Middle East, as well as trends in policy interest rates and the foreign exchange market.」

「The outlook remained uncertain amid the prolonged situation involving Russia and Ukraine, worsening conditions in the Middle East, rising prices for raw materials, energy and other goods resulting from the historically weak yen, and increases in domestic policy interest rates.」

「During the nine-month period ended in the third quarter, social and economic activity continued to normalize following the reclassification of COVID-19 as a Class 5 disease. However, the outlook remained uncertain as expanding geopolitical risks, including the worsening situations involving Russia and Ukraine and the Middle East, and rising prices for raw materials, energy and other goods resulting from the weaker yen adversely affected economic activity.」

「During the six-month period ended in the second quarter, the Japanese economy showed signs of recovery in social and economic activity as the impact of COVID-19 eased. However, downside risks to the economy from the prolonged situation in Ukraine, higher prices resulting from surging raw material and energy costs, and global monetary tightening continued, leaving the outlook uncertain.」

「Downside risks to the economy continue because of the prolonged situation in Ukraine, higher prices resulting from surging raw material and energy costs, and global monetary tightening, leaving the outlook uncertain.」

「In the latest conditions, economic activity is expected to normalize further as expectations grow that COVID-19 will subside. However, concerns are mounting that inflation, including energy costs, will persist because of the prolonged Russia-Ukraine situation, and that long lead times for raw materials, particularly semiconductors, will remain an issue. If concerns over the financial system, centered on the US, spread and cause the global economy to slow, the Company's order plan could be affected.」

「The business environment surrounding the Company was affected by a declining trend in housing starts and an increase in inventories of construction materials, including plywood, in Japan as a reaction to the timber supply shortage caused by last year's wood shock. Inventory adjustments were seen in some areas.」

「However, the economic outlook remained uncertain amid concerns that inflation risks, including energy costs associated with the sharp weakening of the yen and Russia's invasion of Ukraine, as well as component supply shortages caused by the semiconductor shortage, would persist.」

「During the three-month period ended in the first quarter, the Japanese economy was expected to move toward normalization as vaccination progressed, COVID-19 subsided and social and economic activity normalized. However, the risk of a renewed spread of infections caused by new variants remained a concern for economic activity. In addition, the outlook for the economy remained uncertain amid concerns that inflation risks, including energy costs associated with the sharp weakening of the yen and Russia's invasion of Ukraine, as well as component supply shortages caused by the semiconductor shortage, would persist.」

「Component supply problems caused by the semiconductor shortage, higher transportation costs resulting from congestion in port logistics and elsewhere, a sharp weakening of the yen, and the outbreak of Russia's invasion of Ukraine have increased inflation risks, including through energy issues and Russian export restrictions.」

「Some industries showed signs of recovery, supported by expectations that COVID-19 would subside as vaccination progressed and by increased exports accompanying the recovery in overseas economies. However, infections caused by new variants have been rising rapidly, increasing downside risks.」

「The difficult situation has continued, including the issuance of the fourth state of emergency amid a renewed spread of infections caused by a new variant.」

「In the global economy, signs of an economic recovery have emerged in developed countries where vaccination is progressing. However, new risk factors have arisen, including supply problems involving components such as semiconductors and downside risks from volatility in the financial and capital markets, and the outlook remains uncertain.」

「Although signs of an economic recovery have emerged in developed countries where vaccination is progressing, the outlook remains uncertain because of risks such as a renewed spread of infections caused by new variants.」

「The business environment surrounding the Company remained challenging as demand declined amid the deterioration in global economic conditions. Customers' appetite for capital investment weakened as demand fell amid the economic slowdown. In addition, activities in Japan and overseas were conducted with sales promotion and machinery installation work restricted to prevent the spread of COVID-19, causing the Company's orders and sales to remain sluggish.」

「Although signs of recovery were seen after the state of emergency was lifted in May 2020, it remains difficult to foresee when the situation will be brought under control, as infections spread again during the winter. In the global economy, the economic slowdown associated with the spread of COVID-19 has intensified, as US-China trade friction has become prolonged and lockdowns have been reintroduced in some European cities, leaving the outlook for the global economy uncertain.」

「The business environment surrounding the Company has remained challenging because demand declined amid the deterioration in global economic conditions. Customers' appetite for capital investment has also weakened as demand fell amid the economic slowdown, and the Company's orders remained sluggish.」

「The business environment surrounding the Company has also been challenging, as demand has declined amid the deterioration in global economic conditions. Customers' appetite for capital investment has also weakened as demand fell amid the economic slowdown, and the Company's orders remained sluggish.」

「The global spread of COVID-19 has forced the temporary suspension of business negotiations and installation work.」

「Meanwhile, uncertainty about the global economy has persisted because of trade friction resulting from US protectionist policies, the UK's withdrawal from the EU, growing instability in the Middle East and concerns over the spread of the novel coronavirus originating in China.」

「Meanwhile, uncertainty about the global economy has increased because of expanding trade friction resulting from US protectionist policies, the prolonged issue of the UK's withdrawal from the EU, growing instability in the Middle East and Japan-South Korea diplomatic issues.」

「Meanwhile, uncertainty about the global economy has increased because of expanding trade friction resulting from US protectionist policies, the prolonged issue of the UK's withdrawal from the EU, growing instability in the Middle East and Japan-South Korea diplomatic issues.」

「Uncertainty across the global economy is expected to persist, owing to concerns over trade friction resulting from US protectionist policies and instability in Europe.」

「Meanwhile, overseas economies remained uncertain, owing to expanding trade friction resulting from US protectionist policies and instability in Europe.」

「During the six-month period ended in the second quarter, the Japanese economy continued to recover moderately, supported by improvements in corporate earnings and employment conditions. However, the outlook for the economy remained uncertain amid concerns over the impact of US protectionist policies on the global economy.」

「Overseas, the US economy remained solid and emerging economies also recorded firm growth, so the global economy was generally healthy. However, uncertainty over economic trends remains, amid intensifying trade friction between the US and China.」

「Concerns over protectionist policies in the US and China, as well as geopolitical risks relating to North Korea and the political situation in the Middle East, are expected to keep the global economy broadly uncertain.」

「Although companies' appetite for capital investment had been improving, caution toward capital investment has increased as the effects of various capital investment policies have run their course and housing starts have declined.」

「Downside risks to emerging market economies, particularly China, concerns over the Trump administration's policies in the US and geopolitical risks, including the situation in North Korea, have increased, and the outlook is expected to remain uncertain.」

「Downside risks to emerging market economies, particularly China, have not been eliminated. Concerns over the protectionist policies of the Trump administration in the US, the situation in North Korea and European political developments have also increased geopolitical risks, heightening uncertainty across the global economy.」

「On the other hand, the new Trump administration may strongly pursue protectionist trade policies. Downside risks to emerging market economies, particularly China, and potential negative effects, especially on Japanese exporters, remain concerns, leaving the outlook uncertain.」

「Although the US economy continued to perform steadily and the anticipated impact of the UK's withdrawal from the EU was limited, slowing growth in emerging market economies, particularly China, became pronounced, and the global economy as a whole remains uncertain.」

「Uncertainty about the outlook is increasing amid concerns about downside risks in emerging market economies, particularly China, and the impact of the UK's withdrawal from the EU.」

「Capital investment has remained cautious amid persistent uncertainty across the global economy, including signs of economic slowdown in emerging markets and declining crude oil prices. We believe that a downturn in economic conditions in Japan and overseas could have a significant impact on the performance of our group.」