Economic Slowdown in China and Southeast Asia and Weaker Investment Sentiment among Domestic Manufacturers

「During the fiscal year, the business environment surrounding our Group remained firm, supported by strong demand for aerospace-related equipment following the significant expansion of the defense buildup plan, a gradual recovery in demand for semiconductor manufacturing equipment driven by AI-related investment, and increased demand for facility construction work accompanying the construction of semiconductor manufacturing plants.」

「During the six months ended 30 September 2024 (1 April 2024 to 30 September 2024), the business environment surrounding our Group remained firm, supported by the gradual recovery in demand for semiconductor manufacturing equipment, increased demand for facility construction work related to the construction of semiconductor manufacturing plants, and strong demand for aerospace-related equipment following the significant expansion of the defense buildup plan.」

「In fiscal 2024, the business environment surrounding our Group remained subject to uncertainty, including the prolonged conflicts in Ukraine and Israel, concerns about the outlook for the Chinese economy and the impact of the US presidential election. However, the semiconductor market already appears to have bottomed out, and a recovery is expected going forward.」

「During the first nine months of the fiscal year ending March 2024 (1 April 2023 to 31 December 2023), demand for semiconductor manufacturing equipment remained subdued due to delays in inventory adjustments by semiconductor manufacturers since the second half of fiscal 2022. In factory automation-related fields, demand also struggled to grow as the recovery in automation investment in the Chinese market remained slow.」

「During the first six months of the fiscal year ending March 2024 (1 April 2023 to 30 September 2023), the business environment surrounding our Group remained subdued, as capital investment in semiconductor manufacturing equipment, electronic components and factory automation-related fields continued to be cautious due to the effects of inventory adjustments in the semiconductor industry since the second half of fiscal 2022 and stagnation in the Chinese market.」

「Although countries around the world have been moving to provide policy support to strengthen semiconductor supply chains, capital investment in semiconductor manufacturing equipment, electronic components and factory automation-related fields remained cautious and subdued recently due to the prolonged impact of inventory adjustments.」

「Although the prolonged Russia-Ukraine situation, the yen’s depreciation against the backdrop of monetary tightening by the US and Europe, and factors including the implementation of China’s zero-COVID policy led to higher resource and material prices and shortages of components, capital investment remained firm, particularly in the semiconductor industry, supported by strong global demand for semiconductors.」

「The business environment surrounding our Group remained firm. Overseas, personal consumption and capital investment in the US remained strong, while the Chinese economy continued on a recovery trend as capital investment in manufacturing increased. In Japan, signs of recovery in private-sector capital investment strengthened, and conditions remained solid.」

「During the first six months of the fiscal year ending March 2022 (1 April 2021 to 30 September 2021), the US economy recovered as personal consumption and capital investment increased, while the Chinese economy remained on a recovery trend as capital investment in manufacturing increased. In Japan, public investment remained firm, private-sector capital investment showed signs of recovery, and the economy remained on a gradual recovery trend.」

「During the first three months of the fiscal year ending March 2022 (1 April 2021 to 30 June 2021), the business environment surrounding our Group showed a gradually established growth trend in China, the US and Europe. In Japan, some demand began to recover in response, but caution toward capital investment remained strong due to the impact of the spread of COVID-19, and conditions of persistent uncertainty about the outlook continued.」

「From the second half of the fiscal year, the US economy showed signs of recovery, partly due to the effects of economic measures, while economic activity in China also continued to normalize, led by exports. In Japan, the economy moved toward recovery from the decline in the first half of the fiscal year, but the recovery lost momentum due to factors including the reissuance of the state of emergency declaration following a resurgence in infections, resulting in a delay in the recovery of private-sector capital investment.」

「During the first nine months of the fiscal year ending March 2021 (1 April 2020 to 31 December 2020), the business environment surrounding our Group was affected by the spread of COVID-19, which severely restricted the movement of people and caused economic activity to contract both in Japan and overseas. Overseas, there were signs of an economic recovery, mainly as economic activity normalized in China, while stagnation continued in other Asian countries. In Japan, private-sector capital investment also remained cautious and conditions remained difficult.」

「The spread of COVID-19 severely restricted the movement of people, causing economic activity to contract in Japan and overseas. Overseas, China showed signs of an economic recovery as economic activity resumed, but significant improvement was not achieved, partly because of the impact of US-China trade tensions. In Japan, private-sector capital investment and other areas remained at low levels, and conditions continued to be severe.」

「During the three-month period ended 30 June 2020, economic activity contracted substantially in Japan and overseas as the spread of COVID-19 intensified, and conditions generally became severe as companies took a more cautious stance toward investment. Investment related to semiconductor manufacturing equipment, however, remained firm.」

「During the nine-month period ended 31 December 2019, the US economy remained firm, supported by personal consumption amid prolonged US-China trade tensions, although capital investment and other areas showed weakness. China's economy remained on a slowing trend as growth in production activity and capital investment declined, while Southeast Asian countries remained sluggish because of stagnant export growth. In Japan, public investment remained solid, but exports were weak amid the overseas economic slowdown and companies continued to take a cautious stance toward private-sector capital investment, resulting in generally severe conditions.」

「During the six-month period ended 30 September 2019, the US economy continued to recover, supported by personal consumption amid the impact of US-China trade tensions, although capital investment and other areas showed weakness. China's economy remained on a slowing trend as growth in production activity and capital investment declined, while Southeast Asian countries remained sluggish because of stagnant export growth. In Japan, public investment remained solid, but exports were weak amid the overseas economic slowdown and private-sector capital investment lacked strength, causing the economic recovery to stall.」

「During the three-month period ended 30 June 2019, the US economy continued to grow firmly, supported by personal consumption and capital investment, while China's slowdown became more pronounced, with weakness in capital investment and personal consumption. In Southeast Asia, exports stagnated despite support from domestic demand. In Japan, public investment generally remained firm, but private-sector capital investment remained sluggish amid strong uncertainty about the outlook, despite demand for labor-saving investment arising from labor shortages.」

「China's economy remained on a slowing trend, with weakness in capital investment and personal consumption, while exports from Southeast Asian countries stagnated, although their economies remained firm, mainly on domestic demand. In Japan, public investment continued to decline, and although demand for labor-saving investment due to labor shortages remained solid, private-sector capital investment lacked strength because of lower corporate earnings and other factors, causing the economic recovery to stall.」

「During the nine-month period ended 31 December 2018, uncertainty emerged overseas as China's economic slowdown became more pronounced, but conditions remained firm, supported by increased capital investment in the United States against a backdrop of strong corporate conditions and solid domestic demand in Southeast Asian countries. In Japan, companies also showed a cautious stance toward capital investment in the latter half of the period, but the economy generally remained stable, supported by private-sector capital investment driven by demand for labor-saving measures and equipment replacement.」

「Overseas, capital investment in the United States increased against a backdrop of firm corporate conditions, and the economic recovery continued. China's economy showed some signs of recovery but remained on a slowing trend, while Southeast Asian countries remained firm owing to increased capital investment. In Japan, public investment remained solid and private-sector capital investment increased as corporate earnings improved, so the economy generally remained on a recovery trend.」

「The business environment surrounding the group remained on a recovery trend in Japan and overseas, supported by firm personal consumption and corporate capital investment. Overseas, although the growth rate of private-sector capital investment in China slowed, personal consumption expanded and solid growth continued. In Japan, public investment generally remained firm, while private-sector capital investment increased, mainly in rationalization and labor-saving investment to offset labor shortages.」

「During the nine-month period ended 31 December 2017, the US economy remained firm on favorable employment conditions and personal consumption. In China, domestic demand slowed due to tighter regulations and other factors, but the economy performed well, supported by growth in external demand. In Japan, public investment weakened, but private-sector capital investment showed signs of recovery, mainly in labor-saving investment, and the economy generally continued its gradual recovery.」

「During the six-month period ended 30 September 2017, the US economy expanded moderately as personal consumption and capital investment increased, while China and Southeast Asian countries remained on a recovery trend owing to a recovery in exports and firm domestic demand. In Japan, signs of a recovery in private-sector capital investment emerged as demand for labor-saving investment increased, and public investment also trended upward, so the economy generally continued its gradual recovery.」

「During the three-month period ended 30 June 2017, the business environment surrounding the group remained on a generally gradual recovery trend. Concerns about the outlook due to the impact of monetary policies in various countries remained, but the economies of the United States and Europe expanded moderately, economic conditions in China and Southeast Asian countries recovered, and domestic private-sector capital investment began to recover accordingly.」

「During the nine-month period ended 31 December 2016, the business environment surrounding the group continued to show a gradual recovery in major developed countries, led by the United States. In China and Southeast Asian countries, however, the economy remained on a slowing trend, and capital investment in manufacturing, excluding certain industries, had not recovered. In Japan, despite increased public investment and signs of recovery in the third quarter, companies continued to take a cautious stance toward capital investment because of uncertainty about the outlook.」

「In China, the economy entered a slowing trend as private-sector capital investment stagnated under the impact of excessive capital investment, and the Southeast Asian countries affected by this also remained sluggish. In Japan, although private-sector capital investment was affected by stagnant exports resulting from the overseas economic slowdown and by the impact of yen appreciation on corporate earnings, it remained firm owing to a recovery in public investment.」

「The slowdown in economic conditions in China and Southeast Asian countries, together with the resulting decline in investment sentiment among domestic manufacturers, made signs of a recovery difficult to discern, and this situation continued.」