Business Impact of Sluggish Demand and Weak Public-Sector Demand

「Global conditions in fiscal 2026 are expected to remain uncertain due to rising geopolitical risks, changes in supply chains stemming from economic security considerations, disruption to the international order and continuing inflation.」

「During the interim consolidated accounting period, the global economy remained uncertain amid downside risks from the impact of U.S. tariff policies, economic weakness caused by stagnant private-sector demand in China, and geopolitical risks arising from heightened tensions in Ukraine and the Middle East.」

「Regarding the impact of tariffs in the United States, the company assumes a decline in demand accompanying a macroeconomic slowdown and higher tariff costs. The consolidated forecasts for the fiscal year ending March 2026 shown below were prepared on the assumption that the impact of the tariff policy will continue throughout the year.」

「The global economy during the interim consolidated accounting period remained uncertain, due to geopolitical risks including Russia's invasion of Ukraine and conflicts in the Middle East, stagnation in the Chinese economy, and higher costs resulting from inflation.」

「During the consolidated fiscal year, the global economy was gradually recovering, but uncertainty remained due to continuing geopolitical risks, including the prolonged Russian invasion of Ukraine and heightened tensions in the Middle East, as well as stagnation in the Chinese economy and rising costs caused by inflation.」

「During the nine-month period ended the third quarter, the global economy remained in an uncertain state, with downside risks to economic activity increasing due to monetary tightening in various countries, a slowdown in China's economic recovery, the prolonged Russian invasion of Ukraine and heightened tensions in the Middle East.」

「During the cumulative second quarter of the current consolidated fiscal year, the global economy remained uncertain, with increasing downside risks to economic activity from monetary tightening in various countries, the protracted Russian invasion of Ukraine and a slowdown in China's economic recovery.」

「During the consolidated fiscal year under review, the global economy remained uncertain. Efforts to balance measures against COVID-19 with socioeconomic activity progressed, and supply chain disruptions showed signs of gradually easing, but downside risks to the economy increased as countries tightened monetary policy to curb inflation, while the Russia-Ukraine situation continued for an extended period.」

「During the cumulative third quarter, the global economy remained uncertain, with increased downside risks from monetary tightening by countries seeking to curb inflation, lockdowns under China’s zero-COVID policy and a sharp subsequent increase in infections following policy changes.」

「During the current second-quarter cumulative period, the global economy remained uncertain as efforts to balance measures against COVID-19 with socioeconomic activity progressed, amid downside risks from monetary tightening by governments seeking to contain inflation, tight energy supply and demand resulting from Russia's invasion of Ukraine, heightened geopolitical risks, and the yen's depreciation in Japan.」

「During the current first-quarter cumulative period, the global economy remained uncertain due to supply constraints and price increases caused by shortages of components and materials, including semiconductors, as well as the prolonged Russia-Ukraine situation and the impact of China's zero-COVID policy.」

「In addition, supply chain disruptions and soaring resource prices caused by war, acts of terrorism, the spread of epidemics and other factors may stagnate economic activity worldwide and affect the performance and financial condition of the company group.」

「In addition to the spread of COVID-19 variants, concerns remain over the impact of supply chain disruptions caused by shortages of semiconductors and other materials on corporate production activities, and uncertainty continues.」

「During the six months ended 30 September, the global economy showed signs of demand recovery due to progress in vaccinations and economic measures implemented by governments, despite a renewed spread of COVID-19.」

「During the first quarter of the fiscal year, the global economy saw signs of a recovery in demand despite the renewed spread of COVID-19, owing to progress in vaccinations and economic measures implemented by governments around the world.」

「Furthermore, as the international division of labor among companies advances, economic disruption in one country may disrupt supply chains worldwide and, if this spreads to deteriorating corporate performance and restrained capital investment, may affect the performance and financial position of the Group.」

「During the cumulative third quarter of the current fiscal year, economic conditions remained difficult worldwide as the impact of the spread of COVID-19 persisted, although a broad-based recovery had been observed since the middle of the period. In Japan, corporate earnings continued to decline and capital investment remained weak due to the impact of infections, but the economy was gradually recovering, led by exports and personal consumption. In North America and Europe, economic activity remained constrained by the resurgence of infections, leaving conditions difficult. In China, the recovery continued as economic activity resumed earlier than elsewhere and government measures to promote investment took effect. Conditions remained difficult in Southeast Asia and India, although the decline had bottomed out.」

「Economic conditions during the cumulative second quarter remained severe worldwide because of the spread of COVID-19, although signs of a recovery emerged in the latter half. In Japan, corporate earnings continued to decline substantially and capital expenditure remained weak because of the pandemic, but the economy was beginning to recover, led by exports and personal consumption. North America and Europe remained generally challenging, but economic activity gradually resumed and signs of recovery emerged. In China, the economy was gradually recovering, supported by the early resumption of economic activity and government measures to promote investment. Conditions in Southeast Asia and India remained extremely severe, although the declines were beginning to level off.」

「Economic conditions during the current first-quarter cumulative period were extremely severe worldwide due to the impact of the spread of COVID-19. In Japan, exports declined rapidly and capital investment remained weak, but the downturn is showing signs of bottoming out, with personal consumption beginning to recover following the lifting of the state of emergency. North America and Europe remained generally severe, but signs of a gradual resumption of economic activity have emerged and there are indications that the downturn is bottoming out. China also remained in a difficult situation, but recovery efforts continued, including the resumption of economic activity. Southeast Asia and India, meanwhile, continued to face extremely severe conditions.」

「During the consolidated fiscal year, China’s economy slowed moderately as the impact of the prolonged U.S.-China trade friction expanded, while North America continued to recover on the back of strong personal consumption and Japan’s economy recovered moderately due to improvements in employment and other factors. As a result, the overall economy continued to recover moderately through the third quarter. However, in the fourth quarter, economic activity was restrained by the spread of COVID-19, and the global economy, led by China, slowed rapidly.」

「During the third quarter cumulative consolidated period, economic conditions in Japan continued to recover moderately, supported by improvements in employment, although weakness became more pronounced, particularly in manufacturing, amid continued weakness in exports. In North America, the recovery continued, supported by improvements in employment and income conditions and strong personal consumption. In China, meanwhile, the economy continued to slow moderately, partly due to the effects of U.S.-China trade friction. Europe showed signs of weakness amid issues including the UK's withdrawal from the EU. In Southeast Asia, the economy recovered moderately, while India showed weak conditions. Overall, the global economy showed increasingly pronounced signs of a slowdown.」

「China, meanwhile, slowed gradually, partly due to the impact of US-China trade friction. Europe showed some weakness, partly due to issues including the UK's withdrawal from the EU. Southeast Asia and India recovered gradually, although some weak trends were also observed. The global economy as a whole showed increasingly pronounced signs of slowing.」

「“In China, the economy slowed moderately due to concerns about US-China trade frictions.” “Across the global economy, the effects of trade frictions emerged and the slowdown intensified.”」

「In China, the economy showed signs of slowing toward year-end amid restrained infrastructure investment and concerns over trade friction with the United States.」

「In China, although infrastructure investment was restrained by government policies and other factors, the economy remained solid, supported by strong private-sector investment.」

「In North America, the economic recovery continued, supported by improvements in employment and income conditions and strong personal consumption. In Europe, despite issues including the United Kingdom’s withdrawal from the EU, the economy recovered gradually on the back of solid personal consumption. In China, the economy remained strong, supported by solid personal consumption and expanding exports against the backdrop of a recovering global economy. Southeast Asia also showed signs of an economic recovery, while India’s recovery continued. In Japan, a gradual economic recovery continued, supported by improvements in employment and capital expenditure against the backdrop of improving corporate earnings.」

「In India, the economy temporarily slowed due to the impact of the unification of the goods and services tax.」

「In North America, sales declined, partly due to delays in some projects. In Europe, in addition to expansion in Western Europe, Russia also showed signs of recovery, and business remained strong, driven by liquid chromatographs and mass spectrometers for the pharmaceutical and food industries. In China, demand was strong across private-sector industries, including chemicals and electronics and electrical equipment, in addition to pharmaceuticals and contract analysis, with liquid chromatographs, gas chromatographs, mass spectrometers and environmental measurement instruments leading performance. In the rest of Asia, overall sales declined, mainly because government-related demand stagnated in Southeast Asia.」

「Our group's products and services are sold worldwide, and economic conditions and capital investment trends in each region may affect our group's operating performance and financial position.」

「In North America, mass spectrometers stagnated due to a temporary decline in healthcare demand, although liquid chromatographs and other products remained solid. In Europe, mass spectrometers performed well in Western Europe for food safety, environmental and clinical applications, but overall sales were flat due to a decline in university and government projects in Eastern Europe following the previous year's surge.」

「However, government demand stagnated in Southeast Asia.」

「Public-sector demand in Southeast Asia remained sluggish, although」