Contraction in Domestic Demand and Uncertainty Surrounding Emerging-Market Demand

「During the current consolidated fiscal year, the Group’s business environment remained difficult. Although some impact from US trade policy was seen in the automotive industry, domestic automobile production remained at the previous year’s level. In the steel industry, weak domestic demand for steel products continued, and conditions remained difficult after ferrous scrap prices rose in the second half.」

「During the interim consolidated accounting period, the Group’s business environment was as follows: in the automotive industry, Japan and the United States reached an agreement on tariff measures, while domestic automobile production remained at the previous year’s level. In the steel industry, however, weak domestic demand for steel products continued.」

「Looking ahead, the business environment surrounding the Group is expected to remain uncertain due to trends in domestic demand for steel products and automobile and construction machinery production affected by US trade policy, among other factors.」

「During the interim consolidated accounting period, the Group’s business environment remained difficult due to a decline in global demand for construction machinery, production stoppages caused by certification irregularities at domestic automakers, and lower automobile production in certain overseas regions.」

「During the cumulative third quarter of the current consolidated fiscal year, the global economy remained unstable due to geopolitical risks including the situations in Ukraine and the Middle East, global monetary tightening and the impact of stagnation in China’s real estate market, although it showed signs of recovery overall. In Japan, the economy recovered gradually as economic activity normalized, supported by a recovery in private consumption. Although the business environment surrounding the Group remained uncertain due to the impact of China’s economic slowdown and fluctuations in energy, logistics and other costs, the impact of component shortages, including semiconductors, was almost eliminated in Japan’s automotive industry, and production began to recover.」

「During the cumulative second quarter of the current consolidated fiscal year, the global economy remained unstable due to geopolitical risks including the prolonged situation in Ukraine, global monetary tightening and the impact of stagnation in China’s real estate market, although it showed signs of recovery overall.」

「During the cumulative third quarter of the current consolidated fiscal year, the global economy remained unstable due to geopolitical risks, including the prolonged situation in Ukraine, and global monetary tightening, although it showed signs of a gradual recovery overall. In Japan, the economy also showed signs of a gradual recovery as economic activity normalized, although it did not achieve a full-scale recovery from the pandemic. However, the business environment surrounding the Group remained uncertain due to stagnating economic activity in China, reduced automobile production caused by shortages of semiconductors and other components, and the continued high costs of coal, electricity, auxiliary materials and logistics.」

「During the cumulative second quarter of the current consolidated fiscal year, the global economy remained unstable due to heightened geopolitical risks, including the situation in Ukraine, and policy rate hikes accompanying accelerating inflation in the United States and Europe, although it showed signs of a gradual recovery overall. In Japan, the economy also showed signs of a gradual recovery as economic activity normalized, with industrial production and capital investment generally trending upward. Meanwhile, in addition to reduced automobile production caused by lockdowns in China and shortages of semiconductors and other components, costs for coal, energy, auxiliary materials and logistics continued to rise, leaving the business environment surrounding the Group uncertain.」

「During the cumulative first quarter of the current consolidated fiscal year, the global economy showed signs of recovery overall amid unstable conditions caused by COVID-19, heightened geopolitical risks and other factors, although some areas remained stalled. Japan’s economy also generally showed signs of recovery as economic activity normalized. Meanwhile, in addition to reduced automobile production caused by lockdowns in China and shortages of semiconductors and other components, costs for coal, energy, auxiliary materials and logistics continued to rise, leaving the business environment surrounding the Group uncertain.」

「During the cumulative third quarter of the current consolidated fiscal year, difficult conditions continued due to the spread of COVID-19 variants and other factors, but signs of recovery emerged, particularly in the United States, as vaccination programs progressed. Japan’s economy also showed signs of recovery overall, although it did not achieve a full-scale recovery from the pandemic. Meanwhile, the business environment surrounding the Group remained difficult due to higher prices for ferrous scrap and coal used as fuel for power generation, as well as reduced automobile production caused by shortages of semiconductors and other components.」

「During the cumulative second quarter of the current consolidated fiscal year, the United States and Europe showed signs of recovery as COVID-19 vaccination programs progressed, but difficult conditions continued due to the spread of COVID-19 variants and other factors. Japan’s economy also showed signs of recovery, but remained in difficult circumstances as economic activity continued to be restrained by declarations of a state of emergency and the implementation of priority preventive measures, among other factors, and as semiconductor shortages emerged during the latter half of the period.」

「During the cumulative first quarter of the current consolidated fiscal year, the global economy remained in a difficult environment due to the spread of COVID-19, but signs of recovery emerged in the United States and Europe, among others, as vaccination programs progressed, although the pace of economic recovery varied by country and region.」

「During the cumulative third quarter of the current consolidated fiscal year, the global economy showed signs of recovery from the sharp downturn caused by the spread of COVID-19, but difficult conditions continued in the United States, Europe and Southeast Asia. In Japan, exports and private consumption began to improve as domestic and overseas economic activity resumed, but the economy did not achieve a full-scale recovery from the pandemic and remained generally sluggish.」

「During the cumulative second quarter of the current consolidated fiscal year, the global economy declined sharply at the beginning of the period as economic activity was restricted in countries around the world due to the spread of COVID-19. Although some areas had begun reopening their economies, the difficult conditions persisted as the impact of the pandemic continued. Japan’s economy also deteriorated significantly, with declines in private consumption and exports and a sharp drop in industrial production.」

「During the cumulative first quarter of the current consolidated fiscal year, the global economy declined sharply as economic activity was restricted in countries around the world due to the spread of COVID-19. Although some countries began reopening their economies, the outlook for the global economy became uncertain amid concerns over the prolonged spread of COVID-19 and escalating tensions between the United States and China.」

「During the current consolidated fiscal year, the global economy showed increasing signs of stagnation, including the continued slowdown in China’s economy due to the impact of US-China trade friction. Toward the end of the fiscal year, economic activity was severely restricted by the global spread of COVID-19, causing the global economy to cool rapidly.」

「During the cumulative third quarter of the current consolidated fiscal year, the global economy showed increasing signs of stagnation. Although the recovery continued in the United States, the slowdown in China’s economy became more pronounced, mainly due to the impact of US-China trade friction. In Japan, employment and income conditions continued to improve, but production weakened further as exports remained soft, and signs of a slowdown emerged, particularly in manufacturing.」

「During the cumulative second quarter of the current consolidated fiscal year, the global economy became increasingly uncertain. Although economic expansion continued in the United States, this was due to the escalating US-China trade friction and the resulting slowdown in China’s economy. In Japan, employment and income conditions continued to improve, but exports and production showed weakness.」

「During the first three months of the fiscal year, the global economy remained uncertain. Although the U.S. economy continued to expand, China’s economy slowed due to escalating U.S.-China trade friction and its effects, among other factors.」

「During the fiscal year, the global economy recovered moderately overall as the U.S. economy continued to expand and emerging markets continued to show signs of recovery. However, the impact of trade friction with the U.S. made the slowdown in China's economy more apparent.」

「During the first nine months of the fiscal year, the global economy recovered moderately overall as the U.S. economy continued to expand and emerging markets continued to show signs of recovery. However, uncertainty emerged due to growing concerns about U.S.-China trade friction and signs of slowing economic growth in China.」

「During the first six months of the fiscal year, trade issues intensified, including the imposition of additional tariffs by the U.S. and China on each other's goods. However, the U.S. economy expanded moderately and China and emerging markets continued to show signs of recovery, resulting in a moderate recovery overall.」

「During the first three months of the fiscal year, the global economy recovered moderately overall. Although concerns about escalating trade issues remained, the U.S. and Europe experienced moderate economic expansion, while China and emerging markets continued to show signs of recovery.」

「The global economy is expected to remain on a recovery trend. Japan's economy is also expected to continue recovering moderately, supported by improvements in employment and income conditions and the government's economic measures. However, adverse factors include the protectionist trend centered on the U.S. and the outlook for the Chinese and emerging-market economies, and the business environment surrounding the Group must be monitored closely.」

「During the first nine months of the fiscal year, the global economy recovered moderately overall as economic conditions remained firm in the U.S. and Europe and China and emerging markets continued to show signs of recovery. Japan's economy also recovered moderately, supported by improvements in employment and a recovery in personal consumption, as industrial production and capital investment remained on an upward trend.」

「During the first six months of the fiscal year, the U.S. and European economies remained firm, while China and emerging markets showed signs of recovery, resulting in a moderate recovery overall. Japan's economy remained on a moderate recovery trend as improvements in employment and industrial production continued.」

「During the first three months of the fiscal year, the global economy recovered moderately overall. The U.S. economy remained firm and Europe continued to recover, while China and emerging markets showed signs of recovery. Japan's economy remained on a moderate recovery trend, supported by improvements in employment and a recovery in industrial production.」

「Although growth continued to slow in China and emerging markets, signs of recovery emerged, and the global economy recovered moderately overall. Japan's economy remained on a moderate recovery trend, supported by improvements in employment and a recovery in industrial production, despite sluggish personal consumption.」

「During the first six months of the fiscal year, the global economy recovered moderately overall. Economic growth continued to slow in China and emerging markets, while the U.S. economy remained firm and Europe continued to recover. Japan's economy remained on a plateau, despite a moderate recovery trend supported by improvements in employment and other factors, as personal consumption remained sluggish and exports showed signs of weakness.」

「Going forward, global demand for automobiles and steel is expected to expand, particularly in emerging markets, while domestic demand is not expected to expand because of population decline, population aging and other factors.」