Uncertainty over the economic outlook and customer caution on capital investment

「A cautious stance toward capital investment was maintained amid continued high prices, a slowdown in overseas economies, concerns that U.S. trade policy could worsen corporate earnings, concerns over higher investment costs, particularly labor and material costs, and supply-side constraints associated with the deteriorating situation in the Middle East. While some companies reviewed their investment plans, investment in maintaining and renewing aging equipment, as well as investment in information technology and research and development, which are less susceptible to economic conditions, environmental measures for decarbonization, which have become increasingly important in recent years, and investment to address medium- to long-term issues such as labor shortages, digital transformation and labor-saving measures, provided support, and capital investment remained firm.」

「物価高の継続、海外景気の減速、米国の通商政策の動向、人件費をはじめとした投資のコスト増加懸念等もあり設備投資への慎重姿勢が維持されましたが老朽設備の維持・更新投資を中心に景気に左右されづらい情報化投資や研究開発投資、昨今重要性が高まっている脱炭素に向けた環境対応投資、人手不足やＤＸ化および省力化といった中長期的な課題解決への投資等が下支えとなり、底堅く推移しました。」

「A cautious stance toward capital investment was maintained amid continued high prices, a slowdown in overseas economies, concerns that U.S. trade policy could worsen corporate earnings, and concerns over higher investment costs, particularly labor costs. While some companies reviewed their investment plans, investment in maintaining and renewing aging equipment, as well as investment in information technology and research and development, which are less susceptible to economic conditions, environmental measures for decarbonization, which have become increasingly important in recent years, and investment to address medium- to long-term issues such as labor shortages, digital transformation and labor-saving measures, provided support, and capital investment remained firm.」

「A cautious stance toward capital investment was maintained amid increasingly severe labor shortages, continued high prices, a slowdown in overseas economies, concerns that U.S. trade policy could worsen corporate earnings, and concerns over higher investment costs, particularly labor costs. While some companies reviewed their investment plans, investment in maintaining and renewing aging equipment, as well as investment in information technology and research and development, which are less susceptible to economic conditions, environmental measures for decarbonization, which have become increasingly important in recent years, and digital transformation and labor-saving measures, provided support, and capital investment remained firm.」

「In addition to persistently high energy and raw material prices due to the protracted situations in Ukraine and the Middle East and the weaker yen, and continued inflation, uncertainty continued due to concerns over the outlook for the Chinese economy, U.S. developments regarding trade policy, and volatility in financial and capital markets. A cautious stance toward capital investment was maintained, but investment in maintaining and renewing aging equipment, as well as investment in information technology, research and development, environmental measures for decarbonization, digital transformation and labor-saving measures, provided support, and capital investment remained firm.」

「In addition to persistently high energy and raw material prices due to the protracted situations in Ukraine and the Middle East and the weaker yen, uncertainty continued due to concerns over a downturn in overseas economies and the effects of volatility in financial and capital markets. A cautious stance toward capital investment was maintained, but investment in information technology, research and development, and environmental measures for decarbonization, which are less susceptible to economic conditions and have become increasingly important in recent years, provided support. Some companies also resumed investment postponed during the COVID-19 pandemic, and capital investment remained firm.」

「Meanwhile, uncertainty continued due to the effects of global monetary tightening, concerns over the outlook for the Chinese economy, the protracted situation in Ukraine and the Middle East, and heightened geopolitical risks. Domestic capital investment, which affects the Company's performance, showed signs of stalling in its recovery against a backdrop of surging resource and energy prices, higher labor costs due to labor shortages, and concerns over a slowdown in the global economy. However, investment in information technology, research and development, and environmental measures for decarbonization, which are less susceptible to economic conditions, provided support, and some companies resumed investment that had been postponed. Overall, capital investment remained firm.」

「Domestic capital investment, which affects our performance, remained cautious because of numerous downward pressures on corporate earnings, including soaring resource and energy prices and higher labor costs, as well as concerns about higher investment costs due to rising prices for materials and software. However, information technology and R&D investment, which are less affected by economic conditions, and environmental investment for decarbonization, whose importance has increased recently, provided support. Some companies also resumed investments postponed during the pandemic, and investment remained resilient.」

「During the cumulative first quarter under review, social and economic activity moved toward normalization as the novel coronavirus disease was reclassified under Japan's Infectious Diseases Act as a Category 5 disease, and the economy continued its moderate recovery. However, uncertainty remained because of concerns about a slowdown in overseas economies against a backdrop of the prolonged situation in Ukraine and global monetary tightening. Domestic capital investment, which affects our performance, did not increase because of soaring resource and energy prices, and companies maintained a cautious stance, focusing on replacing equipment and maintaining and repairing existing facilities. However, labor-saving and digitalization investment and environmental investment for decarbonization provided support, and some companies planned or implemented investments that had been postponed, leaving investment solid.」

「Uncertainty remained amid concerns about a slowdown in overseas economies against a backdrop of soaring resource prices due to the prolonged situation in Ukraine, rising prices caused by rapid yen depreciation, and global monetary tightening. Although companies maintained a cautious stance toward capital investment, information technology and R&D investment, as well as environmental investment for decarbonization, provided support, and some companies resumed investments postponed during the pandemic, leaving investment resilient.」

「During the cumulative third quarter under review, social and economic activity gradually normalized through the easing of restrictions on movement and other measures despite the effects of the novel coronavirus disease. However, the outlook remained uncertain because of downside risks to overseas economies against a backdrop of soaring resource prices due to the prolonged situation in Ukraine and global monetary tightening. Domestic capital investment, which affects our performance, showed some signs of caution because of rising energy and raw material prices, but remained resilient as environmental investment for decarbonization and information technology investment for labor saving provided support.」

「Uncertainty remained amid a sharp increase in infections during the seventh wave of the disease in Japan, soaring global resource prices due to the prolonged situation in Ukraine, and rising prices caused by rapid yen depreciation. Even amid heightened uncertainty over the economic outlook due to the prolonged disease, information technology and R&D investment, which are less affected by economic conditions, and environmental investment for decarbonization provided support. Some companies whose performance had improved resumed investments that had been postponed, and capital investment remained resilient.」

「During the cumulative first quarter under review, Japan's economy showed signs of recovery as the severe conditions caused by the novel coronavirus disease eased and economic and social activity moved toward normalization. However, the outlook remained uncertain because of the effects of rising resource prices accompanying heightened tensions over the situation in Ukraine and supply-side constraints. Domestic capital investment, which affects our performance, remained solid despite continued uncertainty over the economic outlook caused by rapid yen depreciation and rising raw material prices. Investment focused on replacing equipment and maintaining and repairing existing facilities, although some companies planned or implemented digital investment, including information technology-related investment.」

「Domestic capital investment, which affects our performance, generally remained on an upward trend, with some companies, particularly manufacturers, resuming postponed investments as corporate earnings recovered. However, caution toward capital investment was beginning to spread against a backdrop of increasing uncertainty over the economic outlook due to the resurgence of the disease.」

「Even amid heightened uncertainty over the economic outlook due to the prolonged disease, information technology and R&D investment, which are less affected by economic conditions, provided support. Some companies, particularly manufacturers whose performance was beginning to recover, resumed investments that had been postponed, and capital investment remained on an upward trend.」

「Although some companies began resuming new investment projects as corporate earnings improved, a cautious stance was maintained because of increasing uncertainty over the economic outlook caused by the disease, with domestic capital investment, which affects our performance, focused primarily on maintaining and upgrading existing facilities.」

「Companies continued to take a cautious stance, postponing or cancelling non-essential and non-urgent capital investment because of declining corporate earnings and increasing uncertainty over the economic outlook caused by the disease. However, some companies began resuming investment as business performance started to recover.」

「During the cumulative third quarter under review, Japan's economy remained in an extremely difficult situation because of the spread of the novel coronavirus disease. Although the economy showed some signs of recovery after the government lifted the state of emergency, partly as a result of various policies, the disease began spreading nationwide again from November, and the situation remained unpredictable. Domestic capital investment, which affects our performance, remained cautious because corporate earnings declined as the disease persisted and uncertainty over the outlook intensified.」

「Domestic capital investment, which affects our performance, saw companies strengthen their cautious stance because of declining corporate earnings caused by the disease and increasing uncertainty over the economic outlook, including postponing or cancelling non-essential and non-urgent capital investment.」

「During the cumulative first quarter under review, Japan's economy deteriorated rapidly because of the spread of the novel coronavirus disease, creating an extremely difficult situation. Close attention remains necessary to developments concerning the disease in Japan and overseas and to volatility in the financial and capital markets, among other factors, and uncertainty over the outlook is increasing. Domestic capital investment, which affects our performance, weakened as companies became more cautious because of concerns about deterioration in corporate earnings caused by the spread of the disease and increasing uncertainty over the economic outlook.」

「During the consolidated fiscal year under review, Japan's economy remained on a moderate recovery track. Although weakness centered on exports persisted, employment and income conditions continued to improve and corporate earnings remained at high levels. However, the spread of the novel coronavirus disease that emerged in the second half of the fiscal year caused continued turmoil in the financial and capital markets and a global slowdown in economic activity, increasing uncertainty over the economic outlook. Caution toward capital investment was beginning to spread.」

「Meanwhile, the outlook remained uncertain because of US-China trade issues, the future direction of the Chinese economy, the UK's withdrawal from the EU and other overseas economic developments, as well as volatility in the financial and capital markets. Domestic capital investment, which affects our performance, remained on an upward trend, with solid investment in operational efficiency, digitalization, responses to labor shortages, and maintenance and upgrading to address aging facilities. Some companies also planned or implemented capacity expansion investment.」

「Domestic capital investment, which affects our performance, remained on an upward trend. Although weak external demand following the slowdown in the Chinese economy and other factors restrained investment by export companies, rationalization and labor-saving investment prompted by labor shortages, maintenance and upgrading investment to address aging facilities, and research and development investment to utilize new technologies drove investment. Some companies also planned or implemented capacity expansion investment.」

「During the cumulative first quarter under review, Japan's economy remained on a moderate recovery track, supported by continued improvement in employment and income conditions and solid corporate earnings, although exports and production remained weak. However, the outlook remained uncertain because of the potential impact of US-China trade issues on the global economy, the slowdown in the Chinese economy and concerns about an economic downturn following the consumption tax rate increase scheduled for October this year. Domestic capital investment, which affects our performance, was restrained at export companies by weak external demand following the slowdown in the Chinese economy and other factors, but remained on an upward trend, driven by rationalization and labor-saving investment prompted by labor shortages and maintenance and upgrading investment to address aging facilities. Some companies also planned or implemented capacity expansion investment.」

「Domestic capital investment, which affects our performance, remained on an upward trend as investment appetite improved, driven by rationalization and labor-saving investment prompted by labor shortages and maintenance and upgrading investment to address aging facilities. Some companies also planned or implemented capacity expansion investment.」

「During the cumulative third quarter under review, Japan's economy remained on a moderate recovery track as corporate performance improved, supported by a gradual recovery in personal consumption and increased demand for labor-saving investment amid labor shortages. However, the international situation requires close attention as the effects of US protectionist trade policies intensified US-China trade frictions, worsening export- and import-related activity and strengthening signs of a global economic slowdown. The outlook for Japan's economy therefore remained uncertain. Domestic capital investment, which affects our performance, generally remained on an upward trend as investment appetite improved, with some companies planning investments to increase production of major products or in fields expected to grow, in addition to maintaining and upgrading existing facilities.」

「Domestic capital investment, which affects our performance, generally remained on an upward trend as investment appetite improved. In addition to maintaining and upgrading existing facilities, some companies planned investments to increase production and in fields expected to grow.」

「During the cumulative first quarter under review, Japan's economy remained on a moderate recovery track. Although personal consumption lacked momentum due to rising crude oil prices, corporate earnings and employment conditions improved. Meanwhile, the economic outlook remained uncertain because of the effects of US-initiated trade frictions and unstable political conditions in Europe. The recovery in domestic capital investment, which affects our performance, included moves by some companies and industries to make new investments to increase production of major products, but many companies continued to lack investment appetite, maintained a cautious stance and focused primarily on maintaining and upgrading existing facilities.」

「During the consolidated fiscal year under review, Japan's economy remained on a moderate recovery track, with corporate earnings and employment conditions continuing to improve and personal consumption showing signs of recovery. However, the outlook remained uncertain because of the slowdown in emerging-market economies, US policy developments and heightened geopolitical risks. Domestic capital investment, which affects our performance, did not increase at many companies, which maintained a cautious stance and focused primarily on maintaining and upgrading existing facilities, although some companies and industries planned or implemented investments to increase production of major products or in fields expected to grow.」

「Domestic capital investment, which affects our performance, remained moderate compared with the strength of corporate earnings, focusing primarily on maintaining and upgrading existing facilities. However, some companies and industries planned investments to increase production of major products or in fields expected to grow.」

「During the cumulative second quarter under review, Japan's economy remained on a moderate recovery track, with corporate earnings and employment conditions continuing to improve partly as a result of various government policies. However, the outlook remained uncertain because of the slowdown in emerging-market economies, US policy developments and heightened geopolitical risks. Domestic capital investment, which affects our performance, remained cautious at many companies, focusing primarily on maintaining and upgrading existing facilities, although some companies and industries planned investments to increase production of major products or in fields expected to grow.」

「During the cumulative first quarter under review, Japan's economy entered a moderate recovery phase as continued improvement in corporate earnings, together with improvements in employment conditions based on current and future conditions, supported a recovery in personal consumption and some capital investment. In the chemical machinery and equipment industry to which our group belongs, new capital investment and maintenance investment increased as companies worked to optimize production.」

「During the consolidated fiscal year under review, Japan's economy remained on a moderate recovery track, with corporate earnings holding firm and employment conditions continuing to improve. However, the outlook remained uncertain because of the slowdown in emerging-market economies and uncertainty over the effects of the UK's withdrawal from the EU and the policies of the new US administration. Domestic capital investment, which affects our performance, showed some moves by companies and industries to make new investments to increase production of major products, but many companies still lacked investment appetite, maintained a cautious stance and focused primarily on maintaining and upgrading existing facilities.」

「Meanwhile, overseas, the economic outlook became uncertain amid heightened uncertainty in the global economy, including concerns about a slowdown in emerging Asian economies, particularly China, the UK's withdrawal from the EU and the economic policies of the new US administration.」

「Overseas, uncertainty remained over the outlook amid concerns about the slowdown in emerging-market economies, particularly China, and global concerns arising from the UK's withdrawal from the EU. Domestic capital investment, which affects our performance, did not increase as major customers became concerned about downside risks to earnings and adopted a more cautious view of business conditions, focusing primarily on maintaining and upgrading existing facilities.」

「During the cumulative first quarter under review, Japan's economy remained uncertain, with corporate earnings and business sentiment deteriorating as the yen appreciated. Domestic capital investment, which affects our performance, remained cautious because of uncertainty over the economic outlook, focusing primarily on maintaining and upgrading existing facilities.」

「The financial markets showed signs of turmoil amid concerns over the slowdown in emerging-market economies, particularly China, increasing uncertainty over the economic outlook. Capital investment appetite did not increase because of this uncertainty, and companies maintained a cautious stance, focusing primarily on maintaining and upgrading existing facilities.」