Fluctuations in the Global Economy and End Demand

「In automotive applications, after quickly detecting the slowdown in BEV market expansion and intensifying price competition, the Company changed its strategy last fiscal year ahead of its peers, making profitability its top priority,」

「The business environment surrounding the Company in the fiscal year ended March 2024 varied considerably in demand by end market.」

「The IMF forecast global economic growth of 3.0% in 2023, below 3.5% in 2022, as of October 2023, while manufacturing-related indicators remained weak across major regions of the world during the period. Uncertainty over demand in the Company's business environment has grown increasingly acute. In particular, extreme price competition in China's EV market has progressed to the point where market health is being impaired.」

「Divergence among business segments continued in the first quarter: consumer electronics demand remained under adjustment and unit growth in China's EV market declined, while the IT equipment industry showed signs of bottoming out, global automobile production recovered, and industry- and infrastructure-related demand remained strong.」

「The business environment was marked by pronounced divergence among business segments: demand for IT equipment and consumer electronics remained weak and unit growth in China's EV market declined, while global automobile production recovered and demand related to industry and infrastructure remained strong.」

「The business environment remains difficult, with IT equipment shipments continuing to be past their peak, global automobile production recovering slowly, capital-investment-related demand having peaked, and unit growth in China's EV market declining.」

「The recent business environment remains difficult, with shipments of IT equipment and capital-investment-related demand having peaked, global automobile production recovering slowly, and US housing starts continuing to slow. EV-related products were also affected by slower production resulting from lockdowns in China.」

「The business environment remained difficult, with demand affected by slower US housing starts, peak shipments of IT equipment and consumer electronics, and automobile production yet to return to a full recovery trend.」

「During the period, the Federal Reserve, the ECB, the Swiss National Bank and others shifted to rate hikes, causing a change in the macro demand environment. Demand conditions were difficult, with US housing starts slowing, IT equipment and consumer electronics reaching a peak, and automobile production yet to return to a recovery trend.」

「Recently, semiconductor shortages caused by supply-demand imbalances, shortages and price increases for essential motor materials such as electrical steel sheets, and geopolitical risks stemming from Russia's invasion of Ukraine have intensified. Concerns also include uncertainty over energy supplies and higher prices resulting from disruptions to global supply chains.」

「The business environment remains difficult, with risk factors including semiconductor shortages, higher raw-material prices and the spread of COVID-19 in emerging markets having become pronounced. In particular, automobile production by customers in the automotive business has yet to make a full recovery from its declining trend.」

「Recently, risk factors including semiconductor shortages caused by supply-demand imbalances, shortages and price increases for essential motor materials such as electrical steel sheets, and rising geopolitical risks stemming from Russia's invasion of Ukraine have become more pronounced. Concerns also include uncertainty over energy supplies and higher prices resulting from disruptions to global supply chains.」

「Expectations are rising for the containment of COVID-19 through vaccinations and for fiscal stimulus by governments, but uncertainty remains high because of risks including the spread of infections due to new variants, a trend toward renewed lockdowns, concerns over pressure on government finances, rising raw-material prices and shortages of some components, including semiconductors.」

「The World Bank reported that global economic growth settled at negative 4.3% in calendar 2020 and forecast growth of 4.0% in calendar 2021. Although the global economy was expected to recover from the impact of COVID-19 in calendar 2021, the forecast remained below the pre-pandemic projection. The nine months of fiscal 2020 marked a period in which the global economy entered a recovery trend from the slowdown caused by the spread of COVID-19 and lockdowns in regions around the world. Expectations for an end to the pandemic rose with the start of vaccinations, but risks remained, as the World Bank also noted in its global economic outlook, including further spread of the pandemic, delays in vaccine supplies, continued adverse effects on the economy and pressure on government finances. In addition, uncertainty remained high because of escalating US-China tensions and the impact of policies under the new US administration.」

「In the first half of fiscal 2020, the IMF's World Economic Outlook forecast that the global economy would contract 4.4% in 2020 because of the spread of COVID-19, an upward revision of 0.8 percentage points from its June forecast. Although massive fiscal stimulus narrowed the decline, it remained substantially larger than the 0.1% contraction in 2009 during the global financial crisis. Major countries announced a combined US$12 trillion in fiscal stimulus, and the global economy began returning to a recovery path in the July-September quarter. However, massive public- and private-sector debt is expected to constrain economic growth and slow the pace of the recovery ahead.」

「At the beginning of fiscal 2020 (Reiwa 2), the global economy had fallen into a synchronized global recession due to the spread of the novel coronavirus, and the IMF forecast that global growth in calendar 2020 would fall to negative 4.9%, the worst level since the Great Depression of the 1930s.」

「In fiscal 2019, the slowdown in automobile demand and decline in capital investment resulting from China's economic slowdown and US-China trade friction led to lower demand for some NIDEC products.」

「During the nine months of fiscal 2019, the US economy had slowed from its peak in mid-2018, although its expansion had reached a postwar record. US-China trade friction was temporarily contained in the short term through a partial agreement, partly in consideration of the US economy ahead of the November 2020 US presidential election, but geopolitical risks increased because of tensions with Iran. China's economy was slowing and showed signs of bottoming out as a result of recent economic measures, but uncertainty remained amid excessive debt, non-performing loan problems and human-rights issues in Hong Kong and the Xinjiang Uyghur Autonomous Region.」

「In the first half of fiscal 2019, the US, which had continued to expand, began to show signs of slowing as the impact of US-China trade friction and other factors brought the September manufacturing sentiment index to its lowest level since June 2009, immediately after the Lehman shock. The Federal Reserve implemented 2 rate cuts, in July and September.」

「At the beginning of fiscal 2019, concerns over US-China trade friction and overseas economies contributed to a spreading deterioration in business sentiment in the US, particularly in manufacturing and construction. Although the resumption of US-China trade talks, rising share prices and expectations of rate cuts provided support, concerns remained over the US economic expansion entering its 11th year. China's economy also continued to slow because of US-China trade friction, while foreign companies began reorganizing their supply chains in China and some moves to shift operations out of China emerged. Europe also continued to show signs of slowing because of China's economic slowdown, with uncertainty over issues including the UK's withdrawal from the EU. In Japan, views strengthened that concerns over a domestic recession arising from US-China tensions had temporarily receded, but significant uncertainty over the outlook remained.」

「In fiscal 2018, the US economy remained solid, but against the backdrop of concerns over a global slowdown, the Federal Reserve shifted to a position of expecting no rate hike during 2019. In China, the economy temporarily slowed more sharply as the effects of tighter financial conditions for local governments emerged from mid-year, alongside concerns over US-China trade friction, creating a major global impact.」

「During the nine months of fiscal 2018, the global economy saw the impact of US-China trade friction begin to affect the performance of some US companies, while the Federal Reserve took a cautious stance on further rate hikes. China's economic slowdown was becoming more pronounced, with new vehicle sales and retail sales declining and corporate performance in manufacturing and other industries beginning to deteriorate. Although Japan's economy remained resilient, concerns emerged over the impact of US-China trade friction and a stronger yen resulting from the Federal Reserve's decision to forgo a rate hike.」

「In the first half of fiscal 2018, the global economy saw the US continue its moderate expansion, but US-China trade friction intensified after the US imposed its third round of import tariffs on China in September. In addition to Federal Reserve rate hikes, US long-term interest rates rose amid inflation concerns stemming from the strong US economy and higher prices for tariffed goods, raising concerns over the impact on emerging markets.」

「At the beginning of fiscal 2018, the global economy saw the US continue its moderate expansion, but trade friction intensified as China and the EU imposed retaliatory tariffs in response to US import tariffs, while the US indicated that it might expand the scope of its tariffs. The eurozone economy continued to recover, although political risks in southern Europe were a concern. Japan's economy also continued to expand moderately, but the impact of US-China and US-Europe trade friction was a concern.」

「Trade friction between the US and China is intensifying as a result of China's retaliatory measures against US economic sanctions.」

「During the nine months of fiscal 2017, the global economy saw the US continue its moderate expansion, with expectations that the large tax cuts enacted in the US in December 2017 would boost corporate earnings. The European economy also continued to recover, and the ECB continued discussing a reduction in monetary accommodation against the backdrop of the resilience of the European economy and dwindling government bonds eligible for purchase. Japan's economy continued its moderate recovery, while China continued to grow as it reduced its reliance on debt and strengthened state-owned enterprise reforms.」

「In the first half of fiscal 2017, the global economy saw the US continue its moderate expansion. The Federal Reserve decided to begin reducing its holdings from October, moving toward a complete withdrawal of quantitative easing. The European economy also continued to recover, and the ECB began discussions on reducing monetary accommodation. Japan's economy continued its moderate recovery, while China's economy was stronger than expected and was seen as potentially raising its benchmark interest rate before year-end.」

「At the beginning of fiscal 2017, the global economy saw the US continue its moderate expansion, with the Federal Reserve implementing an additional rate hike in June. Political uncertainty in Europe was temporarily dispelled by Macron's election as president in the French presidential and lower-house elections and the victory of the new party he led, and the European economy continued to recover. Japan's economy also continued its moderate recovery, while China's economy remained strong in high-tech industries and others but could slow depending on future monetary policy.」

「Unexpected economic fluctuations in countries or regions where NIDEC's products, or products incorporating NIDEC's products, are sold could adversely affect demand for NIDEC's products.」

「The outlook for China and emerging-market economies could become more uncertain depending on future US trade policy. In Europe, national elections scheduled in several countries this year and the management crisis at Italian financial institutions could also lead to financial instability, so conditions are expected to remain difficult to view optimistically.」

「In the first half of fiscal 2016, the global economy was in an uncertain position despite the US continuing its moderate expansion, given the presidential election scheduled for November and the possibility of further Federal Reserve rate hikes. Financial risks originating in Germany were a concern in Europe. Overall, the global economy lacked strength as concerns continued over an economic slowdown in China caused by overinvestment and the impact of the sharp appreciation of the yen on Japan's domestic economy.」

「At the beginning of fiscal 2016, the global economy faced increased uncertainty over the outlook for the European economy after the United Kingdom voted to leave the EU. The US economy continued to expand moderately, but the Federal Reserve took a cautious stance on further rate hikes in consideration of the global economy. Overall, the global economy lacked strength, amid concerns over the continued slowdown in China and the impact of the sharp appreciation of the yen on Japan's domestic economy.」

「Unexpected economic fluctuations in countries or regions where NIDEC's products, or products incorporating NIDEC's products, are sold could adversely affect demand for NIDEC's products.」