Sluggish personal consumption, overseas economic downturns and intensifying market competition

「However, rising geopolitical risks in response to unstable global conditions and concerns about a slowdown in personal consumption due to continuing price increases pose downside risks to the Japanese economy. Close attention must also be paid to the impact of financial and capital market volatility and developments concerning US trade policy.」

「During the six months ended the interim period, the Japanese economy remained on a gradual recovery trend due to improvements in employment and income conditions and the effects of various policies. However, the impact of US trade policy and financial and capital market volatility, as well as the impact of continued price increases on personal consumption through a deterioration in consumer sentiment, pose downside risks to the Japanese economy, and the outlook remains uncertain. In the jewelry industry, reflecting these conditions, the business environment surrounding companies remained challenging.」

「During the six months ended the interim period, the Japanese economy remained on a gradual recovery trend, supported by improvements in employment and income conditions and increased inbound demand. However, numerous downside risks remain, including unstable international conditions, soaring resource and raw material prices and exchange-rate fluctuations, and the outlook remains uncertain.」

「However, downturns in overseas economies, including the impact of global monetary tightening and concerns about the outlook for the Chinese economy, pose downside risks to the Japanese economy, and close attention must be paid to the impact of rising prices, conditions in the Middle East and financial and capital market volatility.」

「During the nine months ended the third quarter, there were no new risks relating to the business or other matters, nor any material changes to the risks relating to the business and other matters described in the annual securities report for the previous fiscal year. During the nine months ended the third quarter, moves toward the normalization of economic activity gained momentum as restrictions related to the novel coronavirus infection were eased, and signs of a gradual recovery emerged. However, uncertainty about the economic outlook persisted due to persistently high resource and raw material prices resulting from the prolonged military invasion of Ukraine, exchange-rate fluctuations caused by global monetary tightening, the yen's depreciation and rising prices. In the jewelry industry, reflecting these conditions, the business environment surrounding companies remains challenging.」

「During the six months ended the second quarter, there were no new risks relating to the business or other matters, nor any material changes to the risks relating to the business and other matters described in the annual securities report for the previous fiscal year. During the six months ended the second quarter, the Japanese economy remained on a gradual recovery trend as socioeconomic activity normalized following the COVID-19 pandemic and employment and income conditions improved. However, the economic outlook remained uncertain due to soaring resource and energy prices resulting from the situation in Russia and Ukraine, global monetary tightening and unstable exchange-rate movements.」

「During the cumulative first-quarter period, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「Looking ahead, the economy is expected to recover as various policies take effect under a living-with-COVID approach. However, as global monetary tightening continues, a downturn in overseas economies poses a downside risk to the Japanese economy, and close attention must be paid to the impact of rising prices, supply-side constraints and financial and capital market volatility. In the jewelry industry, as customers' scrutiny of companies intensifies, market competition is expected to become increasingly fierce.」

「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「During the cumulative first-quarter period, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「Looking ahead, the economy is expected to recover as economic and social activity moves toward normalization, supported by the effects of various policies and improvements in overseas economies, provided that thorough measures are taken to prevent novel coronavirus infections. However, amid uncertainty surrounding the situation in Ukraine, close attention must be paid to downside risks arising from higher raw material prices, financial and capital market volatility and supply-side constraints, while the impact of the novel coronavirus infection must also be closely monitored.」

「During the nine months ended the third quarter, the Japanese economy was beginning to turn toward a gradual recovery as the number of new novel coronavirus cases fell significantly with the progress of vaccinations and restrictions on socioeconomic activity were gradually eased. However, the economic outlook remained uncertain due to concerns about the spread of infections caused by the emergence of new variants. In the jewelry industry, reflecting these conditions, the business environment surrounding companies remains challenging.」

「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「During the three months ended the first quarter, uncertainty about the outlook continued in the Japanese economy due to sluggish personal consumption and stagnation in economic activity resulting from the declaration of a state of emergency and the application of priority preventive measures in response to the spread of the novel coronavirus infection. In the jewelry industry, reflecting these conditions, the business environment surrounding companies remains challenging.」

「In the jewelry industry, as customers' scrutiny of companies intensifies, market competition is expected to become increasingly fierce.」

「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「During the six months ended the second quarter, the Japanese economy became extremely challenging as the global spread of the novel coronavirus infection stagnated economic activity and caused a rapid deterioration in economic conditions. Although economic activity gradually resumed following the lifting of the government's state of emergency, the economic outlook remained uncertain, as corporate earnings and personal consumption were expected to take some time to recover. In the jewelry industry, reflecting these conditions, the business environment surrounding companies remained challenging.」

「During the three months ended the first quarter, the Japanese economy became extremely challenging as the spread of the novel coronavirus infection led to the issuance of a state of emergency and a rapid stagnation in economic activity. Economic activity has begun to resume following the lifting of the state of emergency, but uncertainty about the economic outlook has increased due to concerns about a second wave of novel coronavirus infections. In the jewelry industry, reflecting these conditions, the business environment surrounding companies remains challenging.」

「The existing framework of the global economy had been forced to change due to the confrontation between the United States and China in recent years and the UK's EU withdrawal, and the spread of the novel coronavirus infection has now greatly accelerated that process.」

「During the nine months ended the third quarter, there were no new risks relating to the business or other matters, nor any material changes to the risks relating to the business and other matters described in the annual securities report for the previous fiscal year. During the nine months ended the third quarter, the Japanese economy remained on a gradual recovery trend, but uncertainty about the outlook continued due to tensions surrounding trade issues, the outlook for the Chinese economy, the UK's EU withdrawal issue and other developments in overseas economies, the impact of financial and capital market volatility, and trends in consumer sentiment following the consumption tax increase. In the jewelry industry, consumers' tendency to restrain spending on jewelry remained strong as their preference for saving continued to increase, and the business environment surrounding companies remained challenging.」

「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「During the cumulative first-quarter period, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「However, the impact of developments in trade issues on the global economy, the outlook for the Chinese economy, uncertainty surrounding overseas economies and policies, and the impact of financial and capital market volatility remain downside risks to the Japanese economy, and uncertainty about the outlook is expected to persist.」

「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「During the six months ended the second quarter, the Japanese economy remained on a gradual recovery trend against a backdrop of improving corporate earnings and employment conditions. However, many sources of uncertainty remain, including the impact of trade friction between the United States and China and heightened global geopolitical risks, and the economic outlook remains uncertain. In the jewelry industry, reflecting these conditions, the business environment surrounding companies remains challenging.」

「During the cumulative first-quarter period, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「Looking ahead, the economy is expected to continue recovering gradually as employment and income conditions improve, supported by the effects of various policies. However, overseas economic uncertainty and financial and capital market volatility remain downside risks to the Japanese economy, and uncertainty about the outlook is expected to persist. In the jewelry industry, as customers' scrutiny of companies intensifies, market competition is expected to become increasingly fierce.」

「During the nine months ended the third quarter, the Japanese economy remained on a gradual recovery trend against a backdrop of improving corporate earnings and employment conditions. However, the company continues to take a cautious view of the outlook due to uncertainty over US policy trends, instability in East Asia and rising labor costs caused by labor shortages. In the jewelry industry, consumers' preference for saving remains unchanged due to concerns about the outlook, and the business environment surrounding companies remains challenging.」

「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「During the three months ended the first quarter, the Japanese economy remained on a recovery trend, supported by a recovery in exports accompanying the global economic recovery, a gradual recovery in employment income and a pickup in consumer sentiment. However, the company continues to take a cautious view of the outlook due to uncertainty over US policy trends, concerns about the outlook for the Chinese economy and rising labor costs caused by labor shortages. In the jewelry industry, consumers' preference for saving remains unchanged due to concerns about the outlook, and the business environment surrounding companies remains challenging.」

「Looking ahead, the economy is expected to recover gradually as employment and income conditions continue to improve, supported by the effects of various policies. However, uncertainty about the outlook is expected to persist, as overseas economic uncertainty and financial and capital market volatility remain downside risks to the Japanese economy. In the jewelry industry, as consumer sentiment remains weak, customers are expected to scrutinize companies even more closely, and competition among companies is expected to intensify further.」

「During the nine months ended the third quarter, the Japanese economy showed signs of a gradual recovery against a backdrop of improving corporate earnings and employment conditions. However, uncertainty about the outlook continues due to instability in financial markets arising from the UK's EU withdrawal issue and the outcome of the US presidential election. Reflecting these conditions, the business environment surrounding the jewelry industry remains challenging.」

「During the six months ended the second quarter, the Japanese economy remained on a gradual recovery trend, supported in part by the effects of various government and Bank of Japan policies. However, personal consumption lacked strength against a backdrop of substantial exchange-rate fluctuations and instability in the stock market, and a full-fledged economic recovery was not achieved. Overseas, in addition to economic slowdowns in emerging Asian economies, including China, concerns about downside risks to the global economy, such as the UK's EU withdrawal issue, have left the economic outlook uncertain. Reflecting these conditions, the business environment surrounding the jewelry industry remains challenging.」

「Against a backdrop of a weak stock market and the yen's appreciation, corporate earnings and personal consumption remain sluggish. Concern over the impact of the United Kingdom's decision to leave the European Union has also heightened uncertainty about the economic outlook. Reflecting these conditions, the business environment surrounding the jewelry industry remains challenging.」

「Downside risks to overseas economies are emerging against a backdrop of multiple factors, including the slowdown in the Chinese economy and interest rate hikes in the United States, and the outlook for the economy remains uncertain. In the jewelry industry, as improvements in consumer sentiment remain slow, customers are continuing to scrutinize companies more closely, and market competition is expected to intensify further.」