Uncertainty over the outlook due to global financial instability, yen appreciation and sluggish domestic consumption

「The automotive market, the segment’s principal market, lacked overall strength because of softening demand in China and intensifying competition, despite steady new-vehicle sales in Japan.」

「In the automotive market, the segment's main market, the sales environment changed sharply due to the impact of US tariff policies, although the market as a whole is showing a gradual recovery.」

「The global economy is on a path toward a gradual recovery as inflation-control measures are implemented, particularly in Europe and the United States. However, uncertainty about the outlook continues due to rising geopolitical risks, higher resource prices, the sluggish Chinese economy and the impact of US tariff policies.」

「In the automotive market, sales are improving as the effects of the global semiconductor shortage and stalled parts supplies ease, but the recovery in demand for new vehicles is slowing amid the global economic slowdown.」

「The global economy experienced slower overall growth due to factors including the impact of monetary tightening in major countries, concerns about the outlook for the Chinese economy, and higher resource and raw material prices resulting from rising geopolitical risks related to Ukraine and the Middle East.」

「The global economy showed signs of recovery as COVID-19 subsided, but global inflation continued despite interest-rate increases by major countries. Together with the prolonged semiconductor shortage, this resulted in continuing disruption and stagnation in supply chains.」

「In the automotive market, the segment's main market, automakers' production stagnated as the effects of the global semiconductor shortage and stalled parts supplies continued from the previous fiscal year. By region, unit sales in the United States declined year on year due to inventory shortages, while sales in China and Japan also fell below the year-earlier period, partly because of the lockdown accompanying the spread of COVID-19 in Shanghai, China.」

「For the next fiscal year, economic activity is expected to recover while efforts are made to contain a resurgence of COVID-19. Meanwhile, tensions have risen sharply, particularly in Europe, following Russia's invasion of Ukraine, decoupling of the global economy has intensified, and trends in supply and demand and the competitive environment in the Group's main markets are expected to enter an increasingly uncertain phase.」

「Revenue for the six months ended the second quarter was a record ¥30,969 million for a first half, up 14.2% year on year. This reflected a sharp increase in revenue in the circuit inspection connector segment on strong demand, despite a return to declining revenue in the second quarter in the automotive communications equipment and wireless communications equipment segments due to the global semiconductor shortage and customer production adjustments resulting from the resurgence of COVID-19 infections.」

「In the automotive market, the segment's main market, automakers experienced production stagnation and inventory shortages due in part to the global semiconductor shortage, although the impact was limited compared with the year-earlier period, which was heavily affected by the spread of COVID-19.」

「During the consolidated fiscal year, the global economy slowed rapidly as economic activity was significantly constrained by the global spread of COVID-19, in addition to intensifying US-China trade friction.」

「In the automotive market, the segment's main market, automakers were forced to cut production because the spread of COVID-19 depressed demand for new vehicles and disrupted and stalled supply chains. Both production and sales fell substantially below the year-earlier period.」

「During the consolidated fiscal year, the global economy generally slowed due to destabilising factors including the prolonged US-China trade conflict, rising geopolitical risks in the Middle East and the UK's EU withdrawal issue. From the fourth quarter onward, the global economy is expected to fall into negative growth as the spread of COVID-19 continues, leaving the outlook extremely uncertain.」

「In China and ASEAN, exports were weighed down by the global economic slowdown caused by the US-China trade conflict and unit sales declined. In Japan, new vehicle sales of registered vehicles and minicars fell below the year-earlier period, partly because of the reactionary decline in demand following the consumption tax increase in October.」

「In the automotive market, the segment's main market, unit sales in the United States remained broadly flat, supported by personal consumption, despite declining business confidence in manufacturing. In China and the ASEAN market, however, unit sales declined amid uncertainty about the economic outlook caused by the US-China trade conflict.」

「In the automotive market, the segment's main market, unit sales declined in both the United States and China due in part to the prolonged US-China trade conflict, while demand in the ASEAN market showed mixed increases and decreases.」

「In particular, intensifying economic friction between the United States and China is affecting not only those two countries but also countries around the world, leaving the outlook for the global economy highly unpredictable.」

「There are also growing concerns that the spread of protectionist trade policies and rising geopolitical risks could weigh on the global economy, leaving the outlook for economic conditions uncertain.」

「Meanwhile, new sources of instability have emerged one after another, including concerns about the EU's cohesion following the UK's decision to leave the EU, a weaker renminbi amid capital outflows from China, and increasingly protectionist rhetoric in the United States.」

「In Japan, although employee income is showing signs of recovery, increasingly thrifty consumer behaviour, the continuing strength of the yen and persistent uncertainty about the outlook for the global economy have cast a shadow over business confidence, particularly among manufacturers.」

「Meanwhile, uncertainty about the outlook increased, including global financial instability arising from the issue of the UK's withdrawal from the EU.」