Global Economic Uncertainty, Sharp Yen Appreciation and Stock Price Declines

「During the interim consolidated fiscal period under review, Japan's economy remained on a moderate recovery track, supported by increased inbound demand and other factors. However, the outlook remained uncertain because of persistently high raw material and energy prices, rising prices, developments in the US government's tariff policies, and the impact of geopolitical risks including the situations in Ukraine and the Middle East.」

「Domestic and overseas economies are expected to remain uncertain because of rising prices, including raw material and energy prices; intensifying US–China tensions resulting from the US government's tariff policies; and geopolitical risks associated with the prolonged situations in Ukraine and the Middle East.」

「The outlook remains uncertain because of factors including continued price increases, employment issues, heightened tensions in the Middle East and other global geopolitical risks.」

「During the third quarter of the consolidated fiscal year under review, social and economic activity moved toward normalization and the economy entered a moderate recovery phase, partly because COVID-19 was reclassified as a Category 5 infectious disease in May of the previous year. However, uncertainty about the outlook continues because of downside risks to the economy caused by global monetary tightening, rising prices against the backdrop of the weaker yen, and the impact of the prolonged situation in Ukraine and heightened tensions in the Middle East.」

「During the second quarter of the consolidated fiscal year under review, Japan's economy moved toward normalization as restrictions on activity related to COVID-19 were eased. At the same time, the outlook remained uncertain because of downside risks to the economy caused by global monetary tightening, rising prices against the backdrop of the weaker yen, and the impact of the prolonged situation in Ukraine.」

「During the first quarter of the consolidated fiscal year under review, Japan's economy moved toward normalization as restrictions on activity related to COVID-19 were eased. However, the outlook remained uncertain because of downside risks to the economy caused by global monetary tightening, rising prices against the backdrop of the weaker yen, and the impact of the prolonged situation in Ukraine.」

「During the third quarter of the consolidated fiscal year under review, Japan's economy gradually moved toward normalization under the 'living with COVID-19' approach after restrictions on activity were lifted, and showed signs of a moderate recovery. However, the outlook remained uncertain because of soaring raw material and energy prices, concerns about exchange-rate movements including the weaker yen, and rising prices. Overseas, the outlook also remained uncertain because of the prolonged situation in Ukraine, the impact on economic conditions of the surge in COVID-19 cases in China, and concerns about a recession caused by global inflation.」

「During the second quarter of the consolidated fiscal year under review, Japan's economy showed signs of a gradual recovery as restrictions on social and economic activity were eased, despite the impact of the sharp increase in infections during the seventh wave of COVID-19. However, the outlook remains uncertain because energy and raw material prices have risen amid the prolonged situation in Ukraine and the yen has depreciated sharply.」

「The prolongation of Russia's invasion of Ukraine is further driving up raw material, food and crude oil prices, and uncertainty about the outlook continues.」

「Although vaccinations are progressing, the risk of infections spreading again because of variants, together with geopolitical risks including Russia's invasion of Ukraine, has further intensified uncertainty about the outlook.」

「As vaccination rates rose, the number of new infections in Japan declined and expectations for the normalization of economic activity increased. However, infections spread again because of the Omicron variant, which is considered highly transmissible, and the timing of the containment of COVID-19 remains uncertain. Accordingly, circumstances continue to require attention to the impact of infection trends in Japan and overseas.」

「During the first quarter of the consolidated fiscal year under review, Japan's economy remained in difficult conditions. Although signs of a recovery were seen in capital investment and other areas as economic activity was restricted by the impact of COVID-19, a third state of emergency was declared in April. The global economy also showed signs of recovery and is expected to continue recovering, but uncertainty about the outlook remains because of the spread of new variants of the virus and other factors.」

「Economic activity and personal consumption remained in an extremely difficult situation because of the global spread of COVID-19. Although government measures led to signs of a recovery in consumer activity, the spread of the third wave of infections has not been brought under control, and uncertainty about the outlook continues.」

「Although sales of car-care products, the Group's core product line, showed signs of recovery from June onward, they remained in difficult conditions.」

「During the first quarter of the consolidated fiscal year under review, Japan's economy was in an extremely difficult situation because the spread of COVID-19 caused economic activity to stagnate and personal consumption to decline. Although the lifting of the state of emergency and government measures led to signs of a recovery in consumer activity, circumstances continue to require attention to the impact of future infection trends in Japan and overseas.」

「During the consolidated fiscal year under review, Japan's economy remained on a moderate recovery track, but the prolonged uncertainty surrounding overseas economies, including US–China trade friction, worsening Japan–South Korea relations and Brexit, together with successive natural disasters and the stagnation of economic activity caused by the global spread of COVID-19, increased downside risks to the economy. The slowdown therefore became more pronounced, further deepening uncertainty about the outlook.」

「In addition, circumstances require even closer attention to the escalating tensions between the United States and Iran, among other developments.」

「Although a moderate recovery trend continued, supported by improving employment and income conditions but lacking strength, conditions remained uncertain because of developments in trade issues, the slowdown in China's economy, heightened geopolitical risks in the Middle East and the impact of the consumption tax increase on consumer trends.」

「Overseas, the economic outlook remained uncertain because of concerns about US protectionism, developments in China's economy and rising tensions in Japan-South Korea relations.」

「Meanwhile, the outlook remained uncertain because of production and logistics costs associated with surging raw-material prices and labor shortages, the economic impact of natural disasters such as major earthquakes and torrential rain, US-China trade friction, the UK's EU departure issue and the slowdown in China's economy.」

「During the first 9 months of the consolidated fiscal year, Japan's economy followed a moderate recovery trend as the government's economic and monetary policies improved corporate earnings and employment and income conditions. However, the outlook remained uncertain because of the impact of trade issues on the global economy, uncertainty in overseas economies and volatility in financial and capital markets.」

「Overseas, the economic outlook remained uncertain because of concerns about US protectionism, developments in China's economy and the presence of geopolitical risks.」

「During the first 9 months of the consolidated fiscal year, Japan's economy showed a moderate recovery trend as corporate earnings and employment and income conditions improved. However, the outlook remained a concern amid continued instability in overseas political conditions, including trends in emerging-market economies, particularly in Asia, policy developments in Europe and the United States, and the threat of military provocation by North Korea.」

「Overseas economies generally followed a recovery trend, but overall economic conditions remained uncertain because of concerns about the protectionist economic policies of the new US administration, uncertainty surrounding the UK's EU departure issue and heightened geopolitical risks in the Middle East and around North Korea.」

「In the United States, political turmoil followed the inauguration of the new president. With tensions continuing over North Korea and Syria and terrorist attacks occurring one after another around the world, particularly in Europe, the Middle East and Africa, global conditions remained unstable and uncertainty about the outlook spread.」

「Meanwhile, concerns about the impact on Japan's economy of the slowdown in China's economy, the UK's departure from the EU and policies of the new US administration have not been dispelled. Although personal consumption showed signs of partially recovering, it remained weak, and the economic outlook continued to be uncertain.」

「During the first 9 months of the consolidated fiscal year, Japan's economy showed a moderate recovery trend against a backdrop of improving employment and income conditions, although the UK's EU departure issue and policies of the new US administration caused sharp exchange-rate fluctuations, increasing uncertainty in overseas economies and opacity in financial and capital markets.」

「Overseas, concerns about an economic slowdown in emerging Asian economies and the UK's EU departure issue cast a shadow over the global economy. Meanwhile, expectations for the outlook strengthened further in the United States, where strong economic indicators included the Dow Jones Industrial Average reaching a record high, and the timing of US interest-rate hikes has drawn global attention.」

「In addition to heightened geopolitical risks in the Middle East, the UK's decision to leave the European Union triggered turmoil in EU countries, led to a sharp appreciation of the yen and a substantial decline in share prices in Japan, and spread uncertainty about economic conditions worldwide, leaving the outlook difficult to predict.」