Slowing Growth in China and Sluggish Capital Investment

「During the interim consolidated accounting period, the global economy surrounding our group remained resilient despite low growth, as domestic demand in the United States expanded on rising real wages and European countries implemented fiscal support measures and interest-rate cuts, although stagnant real estate market conditions in China weighed on the economy.」

「Uncertainty over the outlook increased due to stagnation in the Chinese economy and expanding geopolitical risks.」

「Shortages of industrial materials such as semiconductors and soaring energy costs associated with the prolonged Ukraine crisis continued to negatively affect supply chains.」

「During the six months ended the second quarter, the environment surrounding our group continued to be adversely affected by supply-chain issues, including shortages of industrial materials such as semiconductors, soaring energy costs associated with the prolonged Ukraine crisis, and China's zero-COVID policy, even as economic policy shifted toward measures designed to operate with COVID-19.」

「The combined effects of China's zero-COVID policy and other factors disrupted supply chains, negatively affecting production activities at our group and among our customers.」

「The economic outlook has become uncertain due in part to negative factors affecting the economy, including restrictions on economic activity under China's zero-COVID policy.」

「Consumption, investment and exports in the Chinese economy are performing strongly.」

「The business showed signs of recovery globally following the Chinese market, but the recovery was not sufficient to offset the decline」

「Although the Chinese market recovered relatively quickly, the global recovery remained sluggish」

「During the fiscal year, the global economy deteriorated amid a worldwide slowdown in trade caused by US-China trade friction, the issue of the UK's withdrawal from the EU, and geopolitical risks in the Middle East and East Asia, among other factors.」

「In particular, China's economic stagnation spread to neighboring Asian countries dependent on the Chinese economy and also affected the economic slowdown in Europe.」

「China's slowing growth became pronounced, with the impact spreading to neighboring Asian countries dependent on the Chinese economy, while an economic slowdown also became pronounced in Europe, led by Germany.」

「In China, investment restraint and declining consumption became pronounced as the trade environment became unstable」

「In China, the economic slowdown became pronounced as investment slowed due to debt reduction and consumption slowed because of U.S.-China trade friction from the third quarter onward, with the impact also spreading to the earnings of European companies.」

「The slowdown in China's real economy became pronounced as trade friction between the United States and China intensified」

「In Asia, China continued to achieve stable growth while pursuing structural adjustments, and signs of economic recovery were also seen in India and Southeast Asian countries.」

「Amid the continuation of China's reform agenda, stable growth is continuing through infrastructure investment and expanding private consumption, while India and Southeast Asia are also gradually recovering economically.」

「Although the pace of China's economic growth has slowed, it has maintained sustained growth, while India and Southeast Asia have gradually begun to show signs of economic recovery.」

「In China, the pace of growth stabilized and signs of an economic bottom emerged, while India and Southeast Asia also showed signs of recovery.」

「China and Southeast Asia continued to experience a gradual economic slowdown」

「China's slowing growth and sluggish capital investment」