Increasing uncertainty over overseas economic conditions due to Brexit and other factors

「Although production volumes remained firm in Japan and overseas despite differences in strength, sales volumes have been trending downward, partly because of the impact of tariff measures in the United States.」

「In China, the property market remained weak, and the effect of government economic stimulus measures was limited. As the recovery in consumption and investment remained slow, the economy continued to be sluggish. In Europe, although the economy remained sluggish, there were signs of bottoming out, but the uncertain situation continued due to soaring energy and material prices and prolonged tensions in the Middle East.」

「In China, the property market remained weak, prices continued to decline, and the recovery in consumption remained delayed, leaving the economy sluggish. In Europe, although the economy remained sluggish, there were signs of bottoming out. However, the uncertain situation continued due to soaring energy and material prices resulting from the prolonged Russia-Ukraine situation, as well as the prolonged tensions in the Middle East.」

「In China, personal consumption drove the economy after the lifting of the zero-COVID policy, but the prolonged weakness in the property market weighed on the economic recovery, delaying improvements in corporate earnings and employment, and the economy remained stagnant. In Europe, the prolonged Russia-Ukraine situation affected energy and material prices and supply chains, and the uncertain situation continued.」

「Overseas, in the United States, the consumer-led economic expansion continued against a backdrop of solid employment conditions, but concerns about an economic slowdown increased as inflation progressed and monetary tightening accelerated. In China, personal consumption drove the economy after the lifting of the zero-COVID policy, but the prolonged weakness in the property market weighed on the economic recovery, delaying improvements in corporate earnings and employment, and uncertainty remained. In Europe, the prolonged Russia-Ukraine situation affected energy and material prices and supply chains, and the uncertain situation continued.」

「At the same time, new uncertainties emerged, including soaring raw-material prices, higher energy prices resulting from the prolonged Russia-Ukraine situation, sharp foreign-exchange fluctuations, and the effects of heightened tensions in the Middle East, and the outlook remains uncertain.」

「Overseas, in the United States, the consumer-led economic expansion continued against a backdrop of solid employment conditions, but concerns about an economic slowdown increased as inflation progressed and monetary tightening accelerated. In China, personal consumption drove the economy after the lifting of the zero-COVID policy, but the prolonged weakness in the property market weighed on the economic recovery, delaying improvements in corporate earnings and employment, and uncertainty remained. In Europe, the prolonged Russia-Ukraine situation affected energy and material prices and supply chains, and the uncertain situation continued. In Asia, signs of recovery have emerged, with activity remaining firm as economic activity resumed following the easing of restrictions related to COVID-19.」

「Overseas, in the United States, the consumer-led economic expansion continued against a backdrop of favorable income conditions resulting from upward pressure on labor costs caused by a widening mismatch between labor supply and demand. At the same time, concerns have increased about future deterioration in corporate earnings and an economic slowdown due to inflation and rising interest rates. In Europe, the prolonged Russia-Ukraine situation has caused soaring energy prices to drive inflation, while supply chain disruptions have also continued, increasing uncertainty about the outlook. In China, economic activity stagnated due to the zero-COVID policy in response to the resurgence of COVID-19 infections, and the economy entered a slowing trend as personal consumption struggled to grow. In Asia, the resumption of economic activity progressed as restrictions related to COVID-19 were eased, and signs of recovery emerged.」

「Overseas, in the United States, the consumer-led economic expansion continued against a backdrop of favorable income conditions resulting from upward pressure on labor costs caused by a widening mismatch between labor supply and demand. At the same time, concerns have increased about future deterioration in corporate earnings and an economic slowdown due to rising inflation and interest rates. In Europe, the prolonged Russia-Ukraine situation has caused soaring energy prices to drive inflation, while supply chain disruptions have also continued, increasing uncertainty about the outlook. In China, economic activity stagnated due to the zero-COVID policy in response to the resurgence of COVID-19 infections, and the economy entered a slowing trend as personal consumption struggled to grow.」

「Overseas, in the United States, the consumer-led economic expansion continued against a backdrop of solid employment conditions, but concerns about an economic slowdown increased as inflation progressed and monetary tightening accelerated. In China, economic activity stagnated due to measures including the zero-COVID policy in response to the resurgence of COVID-19 infections, and the economy entered a slowing trend as personal consumption struggled to grow. In Europe, the worsening Russia-Ukraine situation affected energy and material prices and supply chains, increasing uncertainty about the outlook.」

「The outlook remains highly uncertain, with new factors added to the surge in resource, energy and raw-material prices, namely the Russia-Ukraine situation and the prolonged lockdown in Shanghai.」

「Regarding the global economy, the effects of vaccination began to take hold in the United States, and the economy showed signs of recovery from its record downturn. However, the recovery slowed as the resurgence of infections involving variants caused personal consumption to stagnate. In China, economic activity resumed early as the spread of infections was brought under control, but restrictions on activity resulting from renewed outbreaks in some regions and power shortages caused the economy to slow. In Europe, the economy remained in a difficult situation following the resurgence of COVID-19, but personal consumption and capital investment showed signs of recovery as vaccinations subsequently progressed. In Asia, the resumption of economic activity gradually advanced as infections continued to spread, and signs of recovery emerged. However, difficult conditions continued as infections involving COVID-19 variants spread, particularly in India as well as in Thailand and Indonesia.」

「Regarding the global economy, although new COVID-19 cases continued to emerge in the United States, the effects of vaccination began to take hold, putting the economy on a recovery path from its record downturn, while corporate activity remained firm. In China, economic activity resumed early as infections were brought under control, and the economic recovery continued. In Europe, the economy remained in a difficult situation following the resurgence of COVID-19, but personal consumption and capital investment showed signs of recovery as vaccinations subsequently progressed.」

「In the US, progress in vaccinations put the economy on a recovery path from its record decline. China also resumed economic activity ahead of the rest of the world, driving a recovery led by domestic demand and exports, and corporate activity remained steady. In Europe, the economy entered a recession following the resurgence of COVID-19, but personal consumption and capital investment subsequently showed signs of recovery as vaccinations progressed.」

「In Europe, the large-scale lockdowns and curfews implemented in various countries from March 2020 were subsequently eased and economic activity began to recover. However, infections, particularly those involving the UK variant, resurged, prompting some countries to reintroduce lockdowns. Restrictions on economic activity were prolonged, and conditions remained uncertain.」

「In Europe, large-scale lockdowns and curfews implemented in various countries from March were subsequently eased and economic activity began to recover, but restrictions on economic activity were tightened again following a resurgence of infections, leaving conditions uncertain. In Asia, too, economic activity gradually resumed while infections continued to spread and signs of a recovery emerged, but uncertainty about the outlook continued in countries around the world.」

「In the US, the spread of COVID-19 continued, while in China its impact was gradually easing; however, there was a risk of an economic downturn depending on the impact on the domestic and global economies. In Europe and Asia, too, concerns about further downside risks to the economy grew due to the impact of the disease, and the global economy deteriorated sharply. Uncertainty is expected to continue, including concerns about a resurgence of infections.」

「In the US, the economy deteriorated rapidly due to the impact of COVID-19. Although the impact of the disease was expected to diminish in China, there was a risk of an economic downturn depending on its impact on the domestic and global economies. In Europe and Asia, too, concerns about further downside risks to the economy grew due to the impact of the disease, and the global economy deteriorated sharply.」

「In the cumulative period through the third quarter, the global economy was showing clear signs of slowing as China's economic growth decelerated due to the prolonged US-China trade dispute and export conditions deteriorated in countries including those in Europe, compounded by the Brexit issue and the impact of tighter environmental regulations in Europe, India and elsewhere.」

「In the cumulative period through the second quarter, the global economy gradually slowed as China's growth decelerated and export conditions deteriorated in various countries due to intensifying US-China trade tensions, compounded by the prolonged Brexit issue and the impact of tighter environmental regulations in Europe, India and elsewhere.」

「Overseas, the US maintained strong growth against a backdrop of favorable employment and income conditions, despite the impact of trade issues. In Europe, growth showed signs of slowing as the export environment, particularly in the euro area, became more challenging amid rising uncertainty over issues including Brexit. In China, the slowdown in growth became increasingly pronounced due to slower infrastructure investment and the intensification of the US-China trade war, while capital investment and personal consumption remained firm in Asia.」

「In Europe, growth showed signs of slowing as the export environment, particularly in the euro area, became more challenging amid rising uncertainty over issues including Brexit. In China, the slowdown in growth became increasingly pronounced due to slower infrastructure investment and the intensification of the US-China trade war, while capital investment and personal consumption remained firm in Asia.」

「In Europe, growth showed signs of slowing as the export environment, particularly in the euro area, became more challenging. In China, the slowdown in growth became increasingly pronounced due to slower infrastructure investment and the intensification of the US-China trade war, while capital investment and personal consumption remained firm in Asia.」

「China's growth showed signs of slowing due to the impact of trade friction with the US, while growth continued in Asia, supported by domestic demand, despite some concerns about currency depreciation.」

「In the US, concerns about trade friction increased as the Trump administration implemented protectionist trade policies, but employment and income conditions improved and steady economic expansion continued.」

「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」

「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」

「Overseas, the US economy continued to recover and Europe remained on a gradual recovery trend, while the policies of the new US administration and unstable factors in the euro area created uncertainty about the outlook.」

「Overseas, the US economy continued to recover and Europe remained on a gradual recovery trend, while uncertainty about the outlook increased due to the UK's decision to leave the EU and the political situation following the US presidential election.」

「Overseas, the US economy continued to recover and Europe remained on a gradual recovery trend, while uncertainty about the political and economic outlook increased due to the UK's decision to leave the EU and the political situation following the US presidential election.」

「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」

「Overseas, the US economy continued to perform steadily and Europe entered a gradual recovery trend, but uncertainty about the outlook rose sharply after the UK voted in June to leave the EU. China's gradual slowdown in growth continued, while Asia as a whole remained stalled in its recovery.」