Cautious Capital Investment Due to Geopolitical Risks and Uncertainty in the Global Economy

「US tariff policies, deteriorating Japan-China relations, rising tensions in the Middle East and increasingly severe labor shortages are weighing on the economy, and the outlook remains uncertain.」

「The US tariff policy, deteriorating Japan-China relations, escalating tensions in the Middle East and increasingly severe labor shortages are weighing on the economy, leaving the outlook uncertain.」

「The outlook remains uncertain because of concerns over the impact of US tariff policies, trends in overseas economies including China, heightened geopolitical risks and increasingly severe labor shortages.」

「The outlook remains uncertain because downside risks to the economy continue to be a concern, including surging global resource and raw-material prices, continued yen depreciation, a slowdown in the global economy and heightened geopolitical risks associated with ongoing conflicts around the world.」

「On the other hand, the outlook remains uncertain because of continued increases in raw material and fuel prices, ongoing global monetary tightening and concerns over downside risks in overseas economies, including China.」

「During the nine-month period under review, Japan's economy showed gradual signs of recovery as supply constraints eased, albeit partially, and economic activity normalised. However, conditions remained uncertain as COVID-19 infections again began to spread, while the prolonged invasion of Ukraine, rising resource prices and higher prices associated with the yen's rapid depreciation also weighed on the outlook.」

「During the cumulative second quarter of the current consolidated fiscal year, Japan's economy remained unstable. Although economic activity was gradually normalizing while measures were taken to prevent COVID-19 infections, this was offset by rising geopolitical risks, soaring raw material and fuel prices, sharp foreign-exchange movements triggered by US rate hikes, and weaker personal consumption due to rising prices.」

「However, Japan's economy remained in an uncertain situation, owing to escalating tensions surrounding Ukraine, soaring resource prices, rising inflation, higher interest rates in Europe and the United States, and the ongoing depreciation of the yen.」

「During the nine-month period under review, Japan's economy remained in an uncertain environment. Although moves to restart economic activity gained momentum as the state of emergency and priority preventive measures imposed in response to the spread of COVID-19 were lifted nationwide, concerns arose over renewed infections caused by variants, while the global semiconductor shortage became more severe, supply chain disruptions continued for longer and the slowdown in the Chinese economy also had an impact.」

「The spread of COVID-19 continued for an extended period, resulting in unstable conditions, including global supply-chain disruptions, declining corporate earnings and cautious purchasing behavior as anxiety over income increased amid worsening employment conditions.」

「During the three-month period under review, Japan's economy recovered along a gradual uptrend. Although the fourth wave of COVID-19 had a partial impact on production activities and other areas, recovery construction following disasters gained momentum and the Chinese and US economies recovered.」

「Japan's economy is expected to show signs of a gradual recovery, supported by progress in vaccinations and recoveries in the US and Chinese economies. However, further increases in infections are a concern as COVID-19 and its variants continue to spread, and the end of the pandemic remains unforeseeable, creating a risk that its impact on the global economy will become even more severe.」

「During the first half of the consolidated fiscal year, Japan's economy was significantly affected as personal consumption and production activity stagnated because the global spread of COVID-19 showed no sign of subsiding and restrictions were placed on individual and corporate activities. In addition, uncertainty over the global economy increased due to escalating US-China trade friction, and the outlook remained unclear.」

「During the first quarter of the consolidated fiscal year, Japan's economy remained in difficult conditions because the global spread of COVID-19 stalled production activity, US-China relations deteriorated and the Chinese market slowed.」

「During the first nine months of the consolidated fiscal year, Japan's economy continued to recover moderately as corporate earnings and employment conditions improved, and signs of stability began to emerge in the Chinese economy and US-China trade friction. However, the outlook remained uncertain due to issues including the UK's withdrawal from the EU and the effects of the consumption-tax increase.」

「During the first half of the consolidated fiscal year, Japan's economy continued to show a moderate recovery on improving employment and income conditions, but uncertainty over the global economy increased due to escalating US-China trade friction, and the outlook remained unclear.」

「During the first quarter of the consolidated fiscal year, Japan's economy continued to recover moderately against a backdrop of improving employment and income conditions, but uncertainty increased amid expanding US-China trade friction, a slowdown in the Chinese market and concerns over the outlook for emerging-market economies.」

「Japan's economy is expected to remain uncertain in the next fiscal year, as concerns persist over the expanding impact of US-China trade friction and other factors on production and capital investment, while supply and demand for some production components that had been subject to overheated, front-loaded ordering have stabilized and entered an inventory-adjustment phase.」

「During the first nine months of the consolidated fiscal year, Japan's economy continued to recover moderately on improving corporate earnings and employment conditions, but uncertainty over US-China trade friction left the economic outlook unclear.」

「During the first half of the consolidated fiscal year, Japan's economy continued to recover moderately against a backdrop of improving employment and income conditions, while the global economy remained unstable amid heightened risks from escalating US-China trade friction. In Japan, corporate earnings and capital investment remained firm.」

「During the first quarter of the consolidated fiscal year, Japan's economy continued to recover, despite concerns over the impact of US-China trade friction, while the global economy remained on a recovery trend and employment and income conditions continued to improve.」

「During the consolidated fiscal year, Japan's economy saw geopolitical risks, including the North Korean issue and US-China trade friction, become more pronounced. However, as the global economy continued to recover, corporate production activity remained at high levels, while capital investment in capacity expansion also gained momentum as production increased.」

「As geopolitical risks, including overseas political issues, become more pronounced, disruption in the financial and foreign exchange markets and impacts on economic activity are unavoidable, so developments will need to be monitored closely.」

「Financial and foreign exchange markets remained unstable amid heightened geopolitical risks, including the UK's withdrawal from the EU, a succession of terrorist attacks around the world and the election of a strongly protectionist president in the United States.」

「Financial and foreign exchange markets remained unstable amid heightened geopolitical risks, including the UK's withdrawal from the EU, conflicts and terrorism. Despite support from continued negative interest rates and the postponement of the consumption-tax increase, personal consumption remained sluggish, while growing uncertainty over the outlook for the global economy, including China, led companies to remain cautious about capital investment, and the economy continued to move sideways.」