Uncertainty in market conditions due to the recession in overseas economies, yen appreciation, and slowing personal consumption

「During the interim accounting period, Japan's economy followed a gradual recovery path, with personal consumption showing signs of recovery against a backdrop of improving employment and income conditions, capital investment recovering and exports also showing signs of improvement. However, the economic outlook remained uncertain due to overseas economic uncertainties, including US trade policy, developments in financial and capital markets and geopolitical risks such as the situation in the Middle East. In the jewelry industry, the business environment remained challenging as precious metal prices, including gold and platinum, continued to rise and consumers showed a preference for thrift due to the impact of rising prices.」

「With consumer prices continuing to rise, the outlook remained uncertain due to perceived downside risks to the economy arising from overseas economic developments, rising geopolitical risks and volatility in financial and capital markets. In the jewelry industry, to which the company belongs, challenging operating conditions continued as consumers showed caution in their purchasing intentions while raw material and energy prices remained elevated.」

「In addition, as the rise in consumer prices continues, the outlook remains uncertain, with attention focused on downside risks to the economy arising from overseas economic trends, heightened geopolitical risks, and volatility in financial and capital markets.」

「Meanwhile, uncertainty surrounding overseas conditions, including US trade policy, and downward pressure on personal consumption resulting from continued price increases have emerged as risk factors for the economic outlook.」

「During the fiscal year from 1 February 2024 to 31 January 2025, Japan's economy continued on a gradual recovery path due to improvements in employment and income conditions and the recovery in inbound demand. However, the economic outlook remained uncertain due to factors including surging resource and energy prices resulting from unstable international conditions, rising prices caused by foreign exchange fluctuations and volatility in financial and capital markets. In the jewelry industry, to which the company belongs, the market environment remained challenging due to soaring raw material prices and stagnant personal consumption resulting from rising prices.」

「In the jewelry industry, to which the company belongs, the market environment remains challenging due to factors including soaring bullion prices, a raw material, and cooling consumer sentiment resulting from rising prices.」

「During the cumulative first-quarter period, Japan's economy showed a gradual recovery as economic activity normalized and inbound consumption increased. However, the economic outlook remained uncertain due to factors including the prolonged situation in Ukraine, rising geopolitical risks in the Middle East and elsewhere in Asia, historically rapid yen depreciation, surging global raw material and energy prices and fluctuations in foreign exchange rates. In the jewelry industry, to which the company belongs, the market environment remained challenging as consumers continued to favor thrift and postpone purchases due to prolonged price increases.」

「During the fiscal year from 1 February 2023 to 31 January 2024, Japan's economy showed signs of a gradual recovery as the COVID-19 pandemic subsided and domestic economic activity normalized. However, economic conditions remained uncertain due to factors including surging resource and energy prices resulting from unstable international conditions, rising prices caused by foreign exchange fluctuations, continued yen depreciation and monetary tightening.」

「Meanwhile, the economic outlook remained uncertain due to factors including the ongoing depreciation of the yen, monetary tightening, the prolonged Russia-Ukraine situation, the escalating tensions in the Middle East resulting from the Israel-Hamas conflict, surging global raw material and energy prices and fluctuations in foreign exchange rates.」

「During the cumulative second-quarter period, Japan's economy showed signs of normalization in social and economic activity as COVID-19 was reclassified from Category II to Category V under the Infectious Diseases Control Law, restrictions on activity were eased and acceptance of foreign tourists resumed. However, the economic outlook remained uncertain due to factors including surging global raw material and energy prices resulting from the prolonged Russia-Ukraine situation and rising prices caused by fluctuations in foreign exchange rates. The market environment in the jewelry industry, to which the company belongs, also remained challenging, reflecting these economic conditions.」

「During the cumulative first-quarter period, Japan's economy showed a gradual recovery as economic activity normalized following the easing of restrictions on activity related to COVID-19. However, the outlook remained extremely uncertain due to factors including surging resource and energy prices, unstable foreign exchange movements and the prolonged Russia-Ukraine situation. In the jewelry industry, to which the company belongs, signs of a recovery in consumer spending emerged, but the market environment remained challenging due to factors including cooling consumer sentiment resulting from rising prices.」

「During the fiscal year from 1 February 2022 to 31 January 2023, Japan's economy remained uncertain due to the renewed rise in COVID-19 cases during the seventh wave from July and the eighth wave from October in Japan, and the renewed rise in cases in China from December, as well as soaring global raw material and energy prices resulting from the prolonged situation in Ukraine.」

「In the jewelry industry, to which the company belongs, consumer sentiment has weakened due to the impact of surging resource and energy prices and rising prices resulting from yen depreciation. In addition, the business environment remains challenging due to soaring raw material prices, including bullion and diamonds.」

「During the cumulative second-quarter period, the challenging conditions caused by COVID-19 were easing in Japan and economic activity was beginning to recover gradually. However, the economic outlook remained uncertain due to concern about a renewed spread of COVID-19, surging global resource prices and inflation resulting from the rapid depreciation of the yen. In the jewelry industry, to which the company belongs, retail stores and event sales resumed, and the market environment showed signs of recovery.」

「During the cumulative first-quarter period, Japan's economy showed signs of recovery as economic activity resumed, but the outlook remained uncertain due to factors including rising raw material and crude oil prices, the Russia-Ukraine situation and lockdowns in major Chinese cities.」

「A state of emergency was declared in the summer due to the spread of COVID-19. Personal consumption showed signs of a gradual recovery as vaccination became more widespread and the state of emergency and other restrictions were lifted from autumn, but uncertainty about the outlook increased due to the rapid spread of the Omicron variant. In the jewelry industry, to which the company belongs, retail stores and event sales resumed and showed signs of recovery, but the market environment remained challenging due to lower attendance at events and consumers' tendency to refrain from spending.」

「COVID-19 was subsequently brought under control to some extent, and social and economic activity was expected to recover. However, uncertainty continued due to concern about a renewed spread of infections and downside risks arising from developments in supply chains.」

「Following an earlier recovery in business conditions in some manufacturing industries, including semiconductors and automobiles, business conditions also recovered in the materials and resources-related industries. At the same time, the spread of COVID-19 continued unabated, and conditions remained uncertain due to growing concerns about its impact on economic activity. In the jewelry industry, to which the company belongs, conditions remained challenging due to sluggish personal consumption.」

「During the cumulative first-quarter period, some manufacturing industries, including semiconductors and automobiles, showed a recovery in business conditions, but economic activity remained constrained by the COVID-19 pandemic, and conditions remained challenging. In the jewelry industry, to which the company belongs, conditions also remained challenging due to sluggish personal consumption. However, orders from domestic and overseas customers for jewelry parts increased as customers prepared to resume business activity by resolving inventory shortages caused by having held back on orders since the previous year. Orders for bridal products also increased, including from new customers such as leading regional retailers, in addition to existing customers whose business had remained solid during the COVID-19 pandemic. As a result, sales for the cumulative first-quarter period were ¥760 million, an increase of ¥218 million year on year.」

「However, in addition to the renewed spread of COVID-19 after the start of the year, many uncertain factors remained, including the impact of US-China trade friction, making the economic recovery challenging. In the jewelry industry, to which the company belongs, business activity, which had contracted sharply for a time due to store closures and the cancellation of events, was recovering gradually as retail stores and event sales resumed. However, the market environment remained challenging due to lower attendance at events and consumers' tendency to refrain from spending.」

「During the cumulative third-quarter period, Japan's economy deteriorated rapidly from March due to the expanding impact of COVID-19, but domestic and external demand began to improve from July as countries, including Japan, eased restrictions on economic activity, and the economy showed signs of recovery. However, in addition to concern about a renewed spread of COVID-19, many uncertain factors remained, including the impact of US-China trade friction, and challenging conditions for the economic recovery are expected to continue.」

「During the cumulative second-quarter period, Japan's economy deteriorated significantly as the spread of COVID-19 constrained social and economic activity. Personal consumption, which had been sluggish since the consumption tax increase in autumn 2019, slowed further due to requests to refrain from going out from March this year and the declaration of a state of emergency in April. Corporate earnings also deteriorated rapidly as they were strongly affected by restrictions on economic activity worldwide. In this economic environment, government-led bold monetary and fiscal measures and other steps are beginning to halt the sharp economic slowdown. However, with many uncertain factors, including US-China trade friction, the economic recovery is expected to remain slow and challenging.」

「During the cumulative first-quarter period, Japan's economy deteriorated rapidly as social and economic activity was constrained by the global spread of the novel coronavirus. Personal consumption had been sluggish since the consumption tax increase in autumn 2019, and requests to refrain from going out from March this year and the declaration of a state of emergency in April further worsened personal consumption. Against this backdrop, orders for the company's products declined sharply from March.」

「In the jewelry industry, to which the company belongs, the market size has remained flat for several years, while uncertainty about the outlook has increased due to the contraction in consumption resulting from the consumption tax increase from autumn 2019 and the impact of the novel coronavirus outbreak after the start of the year.」

「While capital investment remained firm, growth in personal consumption was slowing. In addition, corporate earnings, particularly in manufacturing, were beginning to decline due to intensifying US-China trade friction and the impact of a global economic slowdown, leaving the economic outlook uncertain. In the jewelry industry, to which the company belongs, the market environment remained challenging due to slowing growth in domestic personal consumption and the strong consumer preference for thrift.」

「During the cumulative second-quarter period, Japan's economy continued on a gradual recovery path, supported by solid personal consumption and capital investment. However, corporate earnings, particularly in manufacturing, were beginning to slow due to sluggish exports resulting from intensifying US-China trade friction and rising wages caused by the domestic labor shortage, leaving the economic outlook uncertain. In the jewelry industry, to which the company belongs, personal consumption in Japan remained resilient, but the strong consumer preference for thrift was also preventing market expansion, and challenging conditions continued.」

「During the cumulative first-quarter period, Japan's economy followed a gradual recovery path overall, supported by improvements in employment and income conditions and solid capital investment. However, the economic outlook remained uncertain due to growing concern about a global economic slowdown resulting from US-China trade friction and the domestic labor shortage. In the jewelry industry, to which the company belongs, personal consumption showed signs of recovery overall, but its resilience was not clearly evident, and the market environment remained challenging.」

「During the fiscal year from 1 February 2018 to 31 January 2019, Japan's economy continued on a gradual recovery path, supported by improvements in employment and income conditions and corporate earnings, although concern arose about the impact of a series of natural disasters on personal consumption and exports. Meanwhile, the economic outlook remained uncertain due to factors including US-China trade friction and the slowdown in the Chinese economy. In the jewelry industry, to which the company belongs, personal consumption was recovering, but consumers continued to favor thrift, and the market environment remained challenging.」

「During the cumulative third-quarter period, Japan's economy recovered gradually on the back of improving corporate earnings and employment conditions, but the economic outlook remained uncertain as US-China trade friction intensified and signs of a slowdown began to emerge in the Chinese economy. Domestic personal consumption also remained sluggish due to the impact of a series of natural disasters across Japan, and the market environment in this industry remained challenging.」

「During the cumulative second-quarter period, Japan's economy continued on a gradual recovery path against a backdrop of improving corporate earnings and employment conditions, but the outlook remained uncertain due to factors including intensifying US-China trade friction and rising geopolitical risks in the Middle East and Asia. In this industry, too, the market environment remained challenging, as there was no clear evidence of the resilience of personal consumption.」

「At the same time, real GDP temporarily contracted, and overseas, rising geopolitical risks in the Middle East, Asia, Europe and the United States meant that conditions remained uncertain overall. In this industry, too, personal consumption had yet to recover, and the market environment remained challenging.」

「During the fiscal year, Japan's economy continued on a gradual recovery path, with improvements in employment conditions, the income environment and corporate earnings evident against a backdrop of the government's large-scale economic measures and the Bank of Japan's monetary easing policy. Meanwhile, the global economy remained uncertain overall due to rising geopolitical risks in the Middle East, Asia, Europe and the United States. In this industry, too, the market environment remained challenging, as illustrated by the poor performance of the Christmas shopping season.」

「During the cumulative third-quarter period, Japan's economy continued on a gradual recovery path against a backdrop of the government's large-scale economic measures and the Bank of Japan's monetary easing policy. Meanwhile, although the US and European economies continued to recover, the global economic outlook remained uncertain overall due in part to rising geopolitical risks in Asia. In this industry, too, the market environment remained challenging.」

「During the cumulative second-quarter period, Japan's economy followed a gradual recovery path, with corporate production activity, capital investment and employment and income conditions showing improvement against a backdrop of the government's economic policies and the Bank of Japan's monetary policy. Overseas, however, the outlook for the economy as a whole became uncertain due to rising geopolitical risks in the Middle East and North Korea, concerns about the protectionist economic policies of the new US administration and the UK's withdrawal from the EU. In this industry, too, personal consumption had yet to recover fully amid continued consumer preference for low prices and thrift, and the market environment remained challenging.」

「During the cumulative first-quarter period, Japan's economy continued to show improvement in corporate earnings and employment conditions, but the global economy remained uncertain due to factors including the slowdown in emerging-market economies, particularly China, the UK's withdrawal from the EU and economic instability resulting from the change in administration in the United States. In this industry, too, personal consumption had yet to recover fully, and the market environment remained challenging.」

「Japan's economy continued on a gradual recovery path during the fiscal year, supported by improvements in employment and income conditions, but the outlook remained uncertain due to factors including the slowdown in emerging-market economies, particularly China, and policy developments under the new US administration. In this industry, too, consumers remained strongly inclined to economize, while price competition among industry participants intensified, and challenging conditions continued.」

「During the cumulative third-quarter period, Japan's economy continued on a gradual recovery path against a backdrop of improving corporate earnings and employment conditions, but lacked strength due to yen appreciation and weak growth in real wages. Overseas, while some regions, such as the United States, showed a gradual recovery, the outlook remained uncertain due to factors including the UK's withdrawal from the EU and the economic downturn in emerging Asian economies, particularly China. In this industry, too, the operating environment remained challenging, as personal consumption remained sluggish amid continued consumer thrift due in part to stagnant real wage growth.」

「At the same time, uncertainty in the global economy increased due to factors including the slowdown in emerging-market economies, particularly China, and the UK's withdrawal from the EU, and conditions remained uncertain. In this industry, too, the surrounding environment remained challenging, with weakness evident in personal consumption.」