Impact of COVID-19 on Business Activities and Demand

「During the three-month period ended the first quarter of the current consolidated fiscal year, Japan’s social and economic activity continued to normalize as various restrictions were eased, including following the change in the legal classification of COVID-19, and the economy showed signs of a gradual recovery.」

「During the first nine months of the fiscal year, economic activity was moving toward normalization as various restrictions related to COVID-19 were gradually eased. However, the economic outlook remained uncertain because of persistently high raw-material prices due to the prolonged situation in Ukraine, continued increases in energy prices, recession concerns arising from monetary tightening by countries seeking to contain inflation, and substantial exchange-rate fluctuations.」

「The outlook remained uncertain due to concerns over another wave of infections from new variants, global shortages and price increases for components including semiconductors, and disruption and stagnation of economic activity resulting from China’s zero-COVID policy.」

「If the impact of COVID-19 continues or expands, it may affect the performance of the group.」

「The outlook remained uncertain following the emergence of the new Omicron variant. Overseas, economic activity was recovering in Europe, the US and China, but the economic environment remained unpredictable amid supply chain disruptions, higher material prices, logistics bottlenecks and higher transportation costs due to container shortages, as well as concerns over another wave of infections caused by the Omicron variant.」

「In Japan, economic activity, which had been depressed by the spread of COVID-19, followed a gradual recovery trend as exports and capital investment, particularly in manufacturing, improved. Personal consumption, however, remained sluggish due to continued restrictions on movement under the state of emergency.」

「In the global economy, normalization progressed in China, while employment recovered and personal consumption improved in the US as vaccination advanced. In other regions, however, infections with COVID-19 variants increased in some areas, including India, and the outlook remained uncertain.」

「During the current consolidated fiscal year, Japan’s economy stagnated as economic activity was restricted by two states of emergency declared in response to the spread of COVID-19. Overseas, economic activity resumed early in China, while reopening also progressed in the US owing to large-scale economic measures and the rollout of vaccines. In Europe, however, restrictions on economic activity have been prolonged as infections spread again due to variants including the UK variant.」

「During the nine-month period ended the third quarter of the current consolidated fiscal year, Japan’s economic environment showed signs of a recovery in corporate and economic activity, supported by various policy measures despite the continuing impact of COVID-19. However, conditions remained difficult to forecast as new infections increased again toward year-end. Overseas, corporate and economic activity was normalizing in China, while infections worsened further in Europe and the US, with numerous countries and regions entering lockdowns and concerns growing over a prolonged stagnation in economic activity.」

「In Japan, economic activity, which had been depressed by the spread of COVID-19, began to recover following the lifting of the state of emergency. However, the pace of recovery has been gradual, and conditions remain difficult to forecast.」

「Although economic activity has resumed on the assumption of coexistence with the coronavirus, capital investment and consumer demand cannot be expected to return to pre-pandemic levels. Operations continued amid lingering uncertainty about the future, including concerns over a second wave of infections.」

「Regarding sales and shipping operations, there was a period when products could not be shipped at all because all business activities were prohibited in countries or regions under lockdown. At present, operations are subject to virtually no restrictions except in some countries.」