Risk of an Economic Downturn and Volatility in Building Investment Trends

「しかし、資材や賃金上昇による建築費の高騰、建設業界における人材不足等の影響により、依然として先行き不透明な状況が続いております。」

「Nominal private non-residential building investment in fiscal 2026 is expected to increase 3.8% year on year, while private non-residential building floor space started, one of the leading indicators of economic activity, is forecast to increase 1.3% year on year. A situation has become evident in which the growth rate of building floor space started is lower than the growth rate of building investment.」

「Although demand for private non-residential building investment remains substantial, driven by urban redevelopment and latent replacement demand for existing buildings, it has been pointed out that companies are becoming more cautious about construction investment due to soaring construction costs and interest-rate and exchange-rate trends.」

「Nationwide urban redevelopment and other construction activity affecting the Company's operating performance continues to be firm. However, concerns remain over the impact of soaring material prices and wage increases on construction costs, while longer construction periods and project postponements are beginning to emerge as a result of labour regulations and labour shortages in the construction industry, and the outlook remains uncertain.」

「Meanwhile, although nationwide urban redevelopment and other activity affecting the Company's operating performance has continued, concerns remain that the prolonged situations in Ukraine and the Middle East and changes in domestic and overseas interest-rate policies will affect domestic companies' willingness to invest in construction, and the situation remains uncertain.」

「Meanwhile, although nationwide urban redevelopment and other activity affecting the Company's operating performance has continued, concerns remain that the prolonged situation in Ukraine and changes in domestic and overseas interest-rate policies will affect domestic companies' willingness to invest in capital equipment, and the situation remains uncertain.」

「Meanwhile, although nationwide urban redevelopment and other activity affecting the Company's operating performance has continued, concerns remain that overseas economic conditions and exchange-rate and price fluctuations will affect domestic companies' willingness to invest in capital equipment, and the situation remains uncertain.」

「According to the Construction Investment Outlook Based on the Construction Economic Model published by the Research Institute of Construction and Economy in January 2023, nominal private non-residential building investment in fiscal 2023 is expected to increase 4.7% year on year, while private non-residential building floor space started, one of the leading indicators of economic activity, is forecast to increase 1.9% year on year.」

「Meanwhile, although nationwide urban redevelopment and other activity affecting the Company's operating performance has continued, concerns remain that higher costs resulting from a future slowdown in overseas economies, rising resource prices and soaring labour costs will affect companies' willingness to invest in capital equipment, and the situation remains uncertain.」

「In addition, although nationwide urban redevelopment and other activity affecting the Company's operating performance has continued, concerns remain over downside risks to the domestic economy stemming from international developments, and costs are expected to rise as energy and material prices surge, leaving the situation uncertain.」

「In addition, although nationwide urban redevelopment and other activity affecting the Company's operating performance has continued, concerns remain over downside risks to the domestic economy arising from international developments and exchange-rate volatility, while profitability is expected to come under pressure as material prices rise, and the situation remains uncertain.」

「In addition, although nationwide urban redevelopment and other activity affecting the Company's operating performance has continued, the prolonged spread of the infection has in fact led to temporary suspensions and postponements of construction work, reviews of capital investment plans, logistics disruptions and material shortages, among other developments, and the situation remains uncertain.」

「During the cumulative third quarter period, from 1 April 2021 to 31 December 2021, Japan's domestic economy remained difficult due to stagnation in economic activity associated with the spread of COVID-19. Although nationwide urban redevelopment and other projects continued, construction trends affecting our business results remained unpredictable as the prolonged pandemic resulted in construction work being temporarily suspended or postponed and capital investment plans being reviewed.」

「Although nationwide urban redevelopment and other projects continued, construction trends affecting our business results remained unpredictable as the prolonged spread of COVID-19 resulted in construction work being temporarily suspended or postponed and capital investment plans being reviewed.」

「Although nationwide urban redevelopment and other projects affecting the construction industry and our business results continued, the prolonged spread of COVID-19 also resulted in construction work being temporarily suspended or postponed, and projects themselves being cancelled.」

「During the cumulative third quarter period, from 1 April 2020 to 31 December 2020, Japan's domestic economy deteriorated rapidly as economic activity in Japan and overseas stagnated due to the spread of COVID-19. Although some recovery in domestic economic activity was seen after the state of emergency was lifted, the domestic economy remained below the year-earlier level, progress toward normalising economic activity was slow, and difficult conditions continued. Construction trends affecting our business results also became more uncertain.」

「During the cumulative second quarter period, from 1 April 2020 to 30 September 2020, Japan's domestic economy deteriorated rapidly due to the stagnation and contraction of economic activity in Japan and overseas associated with the spread of COVID-19. Although some recovery in domestic economic activity was seen after the state of emergency was lifted, the outlook remained uncertain. Construction trends affecting our business results also became more uncertain due to construction work being suspended or postponed at some sites.」

「During the cumulative first quarter period, from 1 April 2020 to 30 June 2020, Japan's domestic economy was substantially restricted as the spread of COVID-19 disrupted the movement of people and goods between countries and severely constrained economic activity within Japan. Construction trends affecting our business results also became more uncertain as construction work was temporarily suspended at some sites.」

「During the fiscal year, the global economy showed stronger signs of slowing due to escalating trade friction and rising geopolitical risks and remained in an uncertain outlook.」

「During the cumulative second quarter period, from 1 April 2019 to 30 September 2019, the global economy showed stronger signs of slowing due to escalating trade friction and rising geopolitical risks and remained in an uncertain outlook.」

「During the cumulative first quarter period, from 1 April 2019 to 30 June 2019, the global economy showed increasing signs of slowing due to escalating trade friction and rising geopolitical risks.」

「During the fiscal year, the global economy remained solid, led by the United States and Europe, although uncertainty about the outlook increased due to escalating trade friction, turmoil among EU member states and rising geopolitical risks.」

「During the cumulative third quarter period, from 1 April 2018 to 31 December 2018, the global economy remained solid, led by the United States and Europe, although uncertainty about the outlook increased due to disputes over trade policy and rising geopolitical risks.」

「During the cumulative second quarter period, from 1 April 2018 to 30 September 2018, the global economy remained solid, led by the United States and Europe, but uncertainty about the outlook increased due to global disputes over trade policy and rising geopolitical risks.」

「During the cumulative first quarter period, from 1 April 2018 to 30 June 2018, the global economy became more uncertain about the outlook due to rising geopolitical risks and concerns about worsening trade friction, although economic expansion continued in the United States and Europe and Asian countries including China remained solid.」

「During the fiscal year, the global economy remained solid, particularly in the United States and Europe, despite signs of rising geopolitical risks. Meanwhile, Japan's economy continued to recover moderately, supported by solid corporate earnings and increased capital investment. Construction trends affecting our business results remained solid, although growth in private non-residential construction investment and other areas slowed.」

「During the cumulative third quarter period, from 1 April 2017 to 31 December 2017, the global economy remained solid, particularly in the United States and Europe, despite signs of rising geopolitical risks.」

「During the cumulative second quarter period, from 1 April 2017 to 30 September 2017, the global economy continued to grow moderately overall, although some emerging economies remained exposed to downside risks. Meanwhile, Japan's economy continued to recover moderately against a backdrop of steady improvements in corporate earnings and employment and income conditions. Construction trends affecting our business results remained solid, although growth in private non-residential construction investment and other areas slowed.」

「Meanwhile, the domestic economy remained firm, supported by steady improvements in corporate earnings and employment and income conditions. Construction trends affecting our business results, including private non-residential construction investment, showed signs of slowing growth and remained flat.」

「During the fiscal year, the global economy remained uncertain about an economic recovery as the economic slowdown in emerging Asian countries and the effects of the UK's decision to leave the European Union (EU) and the transition to a new US administration gradually became more pronounced. Meanwhile, although Japan's economy continued to recover moderately overall on the back of improving income and employment, private non-residential construction investment and other factors affecting our business results remained at high levels but showed signs of slowing growth and moved close to a flat trend.」

「During the cumulative third quarter period, from 1 April 2016 to 31 December 2016, the global economy remained uncertain about an economic recovery as the economic slowdown in emerging Asian countries continued, compounded by the impact of the UK's decision to leave the European Union (EU) and the transition to a new US administration.」

「During the cumulative second quarter period, from 1 April 2016 to 30 September 2016, the global economy became more uncertain due to the UK's decision to leave the European Union (EU) and economic weakness in emerging Asian countries, and the outlook for an economic recovery remained uncertain.」

「Meanwhile, although the domestic employment environment continued to improve, the domestic economy remained uncertain, with concerns about downturns in overseas economies, particularly in Europe and emerging markets, prolonged weakness in personal consumption, and signs of corporate earnings beginning to weaken due to foreign exchange effects.」

「Despite downside risks to the economy, including sluggish resource prices, foreign exchange fluctuations and continued weakness in emerging-market economies, the economy generally remained on a moderate recovery trend as corporate earnings and employment conditions continued to improve on the back of fiscal and monetary policies implemented by the government and the Bank of Japan.」