Uncertainty over the outlook due to flat domestic consumption and the yen’s continued appreciation

「During the six months ended the interim period, the Japanese economy continued to recover gradually due to improvements in employment and income conditions and increased inbound demand. However, uncertainty over the outlook continued due to unstable international conditions, yen depreciation, persistent price increases and volatility in financial and capital markets.」

「However, the outlook remained uncertain due to the prolonged Russia-Ukraine issue, escalating tensions in the Middle East, sharp exchange-rate fluctuations, rising prices and the impact of future US policy developments and monetary policy.」

「However, in addition to the situation surrounding Russia, Ukraine and the Middle East and rising prices due to yen depreciation, uncertainty over the outlook continued due to the impact on financial and capital markets of the lifting of the negative interest-rate policy.」

「However, in addition to the situation surrounding Russia, Ukraine and the Middle East and rising prices due to yen depreciation, uncertainty over the outlook continued amid volatility in financial and capital markets.」

「Meanwhile, uncertainty over the outlook continued due to the situation surrounding Russia, Ukraine and the Middle East, as well as volatility in financial and capital markets following signs of a transition from deflation to inflation.」

「During the six months ended the second quarter, restrictions on movement imposed due to COVID-19 were eased and socioeconomic activity moved toward normalization. However, the deterioration in the terms of trade due to soaring energy and raw-material prices caused by the situation between Russia and Ukraine and yen depreciation remained unresolved. Concerns also arose over the impact on the Japanese economy of a global economic downturn accompanying continued monetary tightening worldwide, and the outlook remained uncertain.」

「However, deterioration in the terms of trade due to soaring energy prices caused by geopolitical risks including the situation between Russia and Ukraine, rapid yen depreciation and soaring raw-material prices remained unresolved, and the outlook remained uncertain. Going forward, concerns included the impact on supply chains of a rapid increase in COVID-19 infections in China. The recovery of the global economy was slowing due to the prolonged Russia-Ukraine situation and the slowdown in economic activity accompanying global monetary tightening, raising concerns over the impact on the Japanese economy.」

「However, the terms of trade deteriorated sharply due to yen depreciation, higher raw-material prices, lockdowns in production areas including major Chinese cities and supply-chain disruptions, as well as further increases in energy and raw-material prices and transportation costs resulting from the prolonged and worsening situation between Russia and Ukraine and rapid yen depreciation due to global interest-rate hikes led by the US. The outlook remained uncertain.」

「However, the terms of trade deteriorated sharply due to yen depreciation, higher raw-material prices, lockdowns in production areas and supply-chain disruptions, as well as further increases in energy and raw-material prices and transportation costs resulting from the prolonged and worsening situation in Ukraine, accelerating yen depreciation due to global interest-rate hikes led by the US, lockdowns in major Chinese cities and other factors. The outlook remained uncertain.」

「The economic outlook remained uncertain due to yen depreciation, higher raw-material prices, lockdowns in production areas and supply-chain disruptions. In addition, Russia's military invasion of Ukraine on 24 February raised concerns over further increases in raw-material prices and significant exchange-rate fluctuations resulting from a deterioration in the situation.」

「In addition to concerns over a renewed spread of infections, the economic outlook remained uncertain due to yen depreciation, higher raw-material prices caused by rising prices for resources such as crude oil, deteriorating terms of trade caused by disruptions in maritime logistics and supply-chain disruptions.」

「In addition to concerns over a renewed spread of infections, the outlook for the economy was expected to remain uncertain due to overseas risks such as rising geopolitical risk in East Asia resulting from China's increasingly assertive foreign policy and concerns over an economic slowdown in China, as well as yen depreciation and higher raw-material prices caused by rising prices for resources such as crude oil. The situation remained difficult to predict.」

「During the nine months ended the first quarter, personal consumption and other areas showed signs of recovery as economic activity resumed following the lifting of the state of emergency. However, with COVID-19 continuing to spread worldwide and the number of infections in Japan again trending upward, the outlook was extremely uncertain.」

「The economy was rapidly deteriorating due to the heightened atmosphere of self-restraint, including restrictions on economic activity and stagnant consumption accompanying the spread of COVID-19.」

「During the nine months ended the third quarter, consumer sentiment remained weak due to the impact of the consumption tax increase. In addition to overseas risks such as prolonged US-China trade friction, COVID-19 spread worldwide, and the domestic economy rapidly deteriorated as restrictions on economic activity under the state of emergency and stagnant consumption constrained economic activity, further increasing uncertainty over the outlook.」

「Meanwhile, in addition to the prolonged trade friction between the US and China and other uncertainties in overseas developments, concerns arose over adverse effects on the global economy due to factory closures and supply-chain disruptions caused by the spread of COVID-19 in China, leaving the economic outlook extremely uncertain.」

「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「In overseas economies as well, uncertainty in the global economy remained unresolved due to the impact of protectionist trade policies centered on the US and China, escalating trade friction and other factors, and the outlook remained uncertain.」

「During the six months ended the second quarter, the Japanese economy continued on a path of gradual recovery due to improvements in corporate earnings and employment conditions. However, many factors of concern affecting the global economy remained, including protectionist trade policies centered on the US, escalating trade friction and the UK's issue concerning its withdrawal from the EU, and the outlook continued to be uncertain.」

「Concerns remained over the impact on the global economy and financial markets of escalating trade friction between the US and China, and the outlook continued to be uncertain.」

「The outlook remained uncertain due to the impact of the US's protectionist trade policies, expanding trade friction and volatility in financial and capital markets.」

「During the nine months ended the third quarter, the Japanese economy was on a path of gradual recovery, with improvements in corporate earnings and employment conditions and signs of a recovery in personal consumption, although consumer sentiment continued to show signs of stagnation. Concerns also remained over the impact on the Japanese economy of policy developments in other countries, including the situation on the Korean Peninsula and US trade policies, and the outlook continued to be uncertain.」

「During the six months ended the second quarter, the Japanese economy remained on a path of gradual recovery, with personal consumption showing signs of recovery against a backdrop of improved corporate earnings and employment and income conditions. However, the outlook remained uncertain due to the impact of uncertainty in overseas economies and volatility in financial and capital markets.」

「During the nine months ended the first quarter, consumer sentiment showed signs of recovery due to improvements in employment and income conditions, although the economic recovery was not strongly felt. Overseas economies remained firm, but concerns over continuing uncertainty, stemming from unstable international conditions and other factors, remained unresolved.」

「During the fiscal year, the Japanese economy continued to see improvements in employment and income conditions and personal consumption recovered, although growth was not strongly felt by consumers. The US, European and Chinese economies continued on a path of gradual recovery, but the outlook remained uncertain against a backdrop of slowing growth in some emerging economies and concerns over the policies of the new US administration.」

「During the nine months ended the third quarter, the Japanese economy continued to see improvements in employment and income conditions, but consumer sentiment lacked strength and the stagnation in business confidence remained unresolved. The outlook continued to be uncertain due to sharp exchange-rate volatility, slowing growth in emerging economies and concerns over the policies of the new US administration.」

「During the six months ended the second quarter, the Japanese economy continued to see improvements in employment and income conditions, but personal consumption remained stalled as business confidence lacked strength. Uncertainty surrounding the policies of the new US administration and national elections in European countries remained persistent, and the outlook continued to be uncertain.」

「During the nine months ended the first quarter, the Japanese economy saw improvements in employment and income conditions, but consumer sentiment remained stalled due to stagnant business confidence. The outlook became increasingly uncertain amid sharp exchange-rate volatility and rising uncertainty in overseas economies, particularly in the US and Europe.」

「The outlook remained uncertain, amid concerns over an economic slowdown in emerging Asian economies, including China, and turmoil in financial markets following the UK's decision to leave the EU, which led to yen appreciation and falling share prices.」

「Domestic consumption remained broadly flat. Corporate activity also remained cautious due to the impact of the yen's rapid appreciation against other currencies, leaving the outlook uncertain.」