Demand fluctuations due to a slowdown in overseas economies and geopolitical issues

「一方、ホルムズ海峡周辺の地政学的問題による影響につきましては、現時点においてそれを合理的に算定することが困難であることから、織り込んでおりません。」

「Looking ahead to the next period, the international situation, particularly in the Middle East, Ukraine and East Asia, remains unstable, and uncertainty that could affect the global economy is increasing. In addition, concerns about the future business environment surrounding the Group include shortages and price increases for energy and raw materials, labor shortages and rising labor costs.」

「中東、ウクライナ、東アジアをはじめとする国際情勢が不安定な状況にあり、世界経済に影響を及ぼし得る不確実性が高まっております。」

「Looking ahead to the next period, many uncertainties could affect the global economy, including US tariff policy, deteriorating diplomatic relations between countries, and developments in East Asia, Ukraine and the Middle East. In the business environment surrounding the Group, there are also concerns over a further global slowdown in capital investment, a delay in the full-scale recovery of semiconductor-related business conditions, labor shortages and rising labor costs.」

「During the interim consolidated accounting period under review, the global economy as a whole stagnated due to the continued inflationary trend in major countries and the impact of conflicts in various parts of the world.」

「During the third quarter of the fiscal year under review, the global economy stagnated somewhat due to the recovery from the COVID-19 pandemic reaching a plateau, as well as the effects of military conflicts in various parts of the world and worsening US-China relations.」

「During the second quarter of the fiscal year under review, the global economy overall stagnated due to the recovery from the COVID-19 pandemic reaching a plateau, as well as the effects of inflation, worsening US-China relations and Russia's invasion of Ukraine.」

「During the first quarter of the fiscal year under review, the recovery from the COVID-19 pandemic reached a plateau, while the global economy as a whole stagnated due to higher resource prices resulting from Russia's invasion of Ukraine and other factors, as well as the impact of inflation in major countries. In Japan, personal consumption did not grow as much as expected due to the impact of higher prices. However, in the manufacturing sector, to which the Group belongs, production trends across a broad range of fields showed a steady recovery as shortages of semiconductors and components began to ease. Overseas economies, meanwhile, showed mixed signs of an economic slowdown in the United States, the euro area, China and elsewhere, including a slowdown in the recovery of personal consumption.」

「During the fiscal year under review, although the COVID-19 pandemic was moving toward containment, Russia's invasion of Ukraine triggered further increases in resource prices and shortages of goods, significantly affecting the global economy as a whole.」

「During the third quarter of the fiscal year under review, Russia's invasion of Ukraine triggered further increases in resource prices and shortages of goods, significantly affecting the global economy as a whole.」

「Overseas economies saw significant price increases, particularly for energy. Concern over further inflation adversely affected personal consumption, while efforts to restore corporate production activity also remained sluggish.」

「During the first quarter of the fiscal year under review, Russia's invasion of Ukraine triggered further increases in resource prices and shortages of goods, significantly affecting the global economy as a whole. Although the Japanese economy was expected to recover from the damage caused by the COVID-19 pandemic, personal consumption remained sluggish due to higher prices. In the manufacturing sector, to which the Group belongs, production was disrupted in some industries by lockdowns overseas, shortages of semiconductors and components, increasing difficulty in procuring raw materials, and disruptions to logistics.」

「Overseas economies saw personal consumption and corporate production activity improve, particularly in advanced economies. However, higher logistics costs and resource prices and the resurgence of infections driven by variant strains weighed on the recovery. In addition, the emergence of geopolitical risks, including Russia's invasion of Ukraine, caused the recovery to lose momentum toward the end of the period.」

「Overseas, personal consumption and corporate production activity recovered, particularly in advanced economies, as vaccination progressed. However, the pace of recovery remained moderate due to higher logistics and resource prices, the renewed spread of infections caused by variants, and heightened concern about geopolitical risks around the world.」

「Although the manufacturing sector to which the Company belongs showed strong production trends, production in some areas, particularly automobiles, industrial machinery and electronic equipment, stagnated due to the impact of semiconductor shortages continuing from the previous fiscal year and parts shortages caused by lockdowns in ASEAN countries. Overseas, personal consumption and corporate production activity improved in advanced economies, including the United States, as vaccination progressed. However, concerns about the spread of new variants remained unresolved, and higher resource prices also constrained the recovery.」

「During the current first-quarter cumulative period, personal consumption in Japan remained weak due to the impact of COVID-19, while the manufacturing sector recovered in areas including semiconductors, chemicals and industrial machinery, particularly capital goods. Overseas, personal consumption recovered its strength in advanced economies, including the United States, as vaccination progressed. In other countries, however, economies did not recover due to the spread of variants, and overall conditions continued to fluctuate.」

「Although many concerns remained about the outlook, including the inability to foresee an end to COVID-19 and the worsening of trade issues between the United States and China, employment conditions and corporate production activity began to recover in some countries in the latter half of the fiscal year.」

「Although production of automobiles, semiconductors and other products was moving toward recovery overseas, the situation regarding COVID-19 remained unpredictable in many countries. In addition, numerous concerns remained about the outlook for trade issues between the United States and China, leaving the recovery lacking strength.」

「Overseas, many countries and regions experienced a further deterioration in conditions related to COVID-19. In addition, growing concerns about trade issues between the United States and China and other uncertain factors for the outlook meant that the recovery remained weak.」

「During the current first-quarter cumulative period, Japan's economy deteriorated rapidly as the COVID-19 pandemic affected corporate activity and personal consumption across a broad range of industries. Overseas economies also followed a worsening trend, as the continuing spread of COVID-19 slowed the recovery and trade issues between the United States and China became more serious.」

「During the current third-quarter cumulative period, production and export levels in Japan's manufacturing sector showed a declining trend, reflecting stagnation across the global economy, slower capital investment and growing concern about geopolitical risks in various regions. Domestic personal consumption also remained stagnant due to the impact of the consumption tax increase. Overseas, expectations for a resolution of U.S.-China trade friction increased, but caution remained strong, while concerns about conflicts in the Middle East and other issues also grew. As a result, corporate production activity and personal consumption in major countries generally remained weak.」

「During the current second-quarter cumulative period, Japan's economy was affected by stagnation across the global economy and a slowdown in capital investment in major countries. Production and exports in a broad range of manufacturing sectors, including semiconductors, industrial machinery and automobiles, were weak, while personal consumption lacked strength. Overseas, the adverse effects of trade friction between the United States and China became more pronounced. In addition, reflecting concerns about conflicts in the Middle East and the UK's withdrawal from the EU, corporate production activity and personal consumption in major countries were generally weak.」

「During the current first-quarter cumulative period, Japan's economy was affected by growing uncertainty about the global economic outlook. Declines became increasingly evident in the production and exports of semiconductors, industrial machinery, automobiles and other products, while personal consumption also showed signs of stagnation. Overseas economies likewise deteriorated as the COVID-19 pandemic continued to spread, slowing the recovery, while trade issues between the United States and China became more serious.」

「In overseas economies, the effects of trade issues between the United States and other countries gradually became apparent, and signs of weakness emerged in some corporate earnings and personal consumption in major countries.」

「However, for the outlook, trade issues between Japan and the United States and between the United States and China, raw material prices and geopolitical issues remained factors of concern. In addition, concerns about a slowdown in semiconductor-related capital investment meant that Japanese companies were becoming increasingly cautious about the outlook.」

「However, uncertain factors, including geopolitical issues around the world, the stability of governments in major countries and fluctuations in resource prices, continued to persist, leaving concerns about the outlook.」

「However, uncertain factors, including geopolitical issues and domestic political turmoil in various parts of the world, continued to persist, leaving concerns about the outlook.」

「Although there was some weakness in U.S. personal consumption, the U.S. economy remained generally solid. Conditions also brightened in Asia and Europe as trade volumes recovered.」

「In Japan, corporate earnings are expected to expand further in the next fiscal period, but there are many concerns, including delays in the recovery of personal consumption and capital investment, strained diplomatic relations with neighboring countries, and supply-demand adjustments in the automotive and semiconductor sectors that have driven exports. Globally, higher resource prices are expected to have a positive impact, but the possibility of monetary tightening in the United States, the results of elections in European countries and geopolitical risks around the world remain uncertain factors.」

「The U.S. economy remained generally solid in terms of both corporate earnings and personal consumption. However, overseas economies were generally weak due to the slowdown in China and other emerging economies and geopolitical issues in various regions.」

「The U.S. economy remained generally solid in terms of both corporate earnings and personal consumption. However, overseas economies were generally weak due to sluggish production activity in China and emerging economies, geopolitical issues in regions around the world, and the UK's withdrawal from the EU.」

「The U.S. economy maintained a generally solid trend, with corporate earnings continuing to expand and personal consumption also remaining broadly firm. In other regions, however, economic conditions were generally weak due to the slowdown in China and other emerging economies, as well as geopolitical issues.」