Crude Oil Prices, the Chinese Economy, and Geopolitical Risks

「Investment was temporarily restrained due to the impact of U.S. tariff policy last year, and there were few projects generating sales, mainly in the automotive business, during the quarter.」

「The spread of protectionism among countries, slowing growth in China and emerging economies, concerns over a slowdown in the global economy resulting from US-China confrontation, and an economic slowdown resulting from the emergence of global geopolitical risks and the effects of US tariff measures, among other factors」

「There are concerns that heightened tensions in the Middle East could drive up crude oil prices and disrupt logistics networks, while raw material shortages could affect product delivery schedules. In addition, changes in overseas conditions, including Japan-China relations and developments in U.S. trade policy, pose risks to the entire supply chain, leaving the outlook still uncertain.」

「Although the agreement in Japan-US tariff negotiations has eased excessive concern over US tariff policy, sources of uncertainty remain. In addition, the outlook remains uncertain owing to concerns over a slowdown in overseas economies, increasing geopolitical risks, and sharp exchange-rate fluctuations.」

「During the interim consolidated accounting period, the Japanese economy entered a gradual recovery phase against a backdrop of the recovery in global semiconductor demand, continued expansion in inbound demand and progress in passing higher costs on to prices, despite the effects of external factors such as a sharp appreciation of the yen and natural disasters. However, the outlook remains uncertain against a backdrop of unstable conditions, including a slowdown in the global economy, increasing geopolitical risks, concerns over the impact of high prices on consumption, and the worsening labour shortage.」

「A cautious stance toward the outlook for business conditions remains unavoidable owing to concerns over a slowdown in overseas economies including China, increasing geopolitical risks, particularly the destabilisation of the situation in the Middle East, lower demand resulting from price increases, higher costs resulting from soaring labour expenses, and the worsening labour shortage.」

「During the third quarter of the fiscal year, the Japanese economy entered a gradual recovery phase, supported by a recovery in production activity as supply constraints on semiconductors and other products eased, a recovery in inbound demand as economic activity normalised, the weaker yen, and progress in passing higher costs on to prices. However, a cautious stance toward the outlook for business conditions remains unavoidable owing to the effects of monetary tightening in Europe and the United States, a slowdown in the global economy resulting from further delays in the recovery of the Chinese economy, the emergence of geopolitical risks, higher costs resulting from soaring labour expenses, and concerns over the worsening labour shortage.」

「Against a backdrop of unstable conditions, including a slowdown in the global economy resulting from monetary tightening in Europe and the United States and delayed recovery in the Chinese economy, concerns over lower demand and higher costs resulting from further price increases, and the worsening labour shortage, a cautious stance toward the outlook for business conditions remains unavoidable.」

「Looking at the global economy, risks that could act as headwinds to the Japanese economy remain, including worsening economic conditions accompanying monetary tightening in Europe and the United States, disruption to global supply chains resulting from the emergence of geopolitical risks, a downward trend in exports to Asian regions including China, and signs of declining exports to Europe and the United States. Accordingly, excessive optimism regarding improvement and recovery in the domestic economy is not warranted.」

「In addition to continued concerns over persistently high fuel and raw material prices, upward pressure on prices and weaker consumption resulting from sustained high prices, concerns over a slowdown in overseas economies and growing anxiety about financial systems in Europe and the United States made it difficult to anticipate an improvement in business conditions.」

「Although the weaker yen and high crude oil prices levelled off toward year-end and the domestic economy moved toward stability, a cautious stance toward the outlook remains unavoidable owing to concerns over the impact of worsening overseas economies on the export environment and the impact of interest-rate policies in overseas countries on the domestic economy.」

「At the same time, concerns over weaker personal consumption caused by the weaker yen and higher prices, together with rising cost burdens for companies, have weighed on business sentiment. As the risk of a slowdown in the global economy is also increasing, the outlook remains such that a cautious stance is unavoidable.」

「In Japan, business sentiment has improved as personal consumption has recovered and willingness to invest in capital has strengthened with the resumption of economic activity. However, concerns over persistently high raw material prices, higher prices resulting from the weaker yen, and deteriorating earnings at some companies have not been dispelled. It is difficult to determine whether business conditions will improve as companies pass higher costs on to selling prices and expand earnings, or whether the economy will stagnate as higher prices depress personal consumption.」

「During the third quarter of the fiscal year, concerns over a renewed spread of COVID-19, shortages and soaring prices of raw materials, and deterioration in the export environment intensified toward the end of the period. Although demand related to IT and software investment continued to increase, business sentiment, which had previously been improving, levelled off and moves to restrain capital investment emerged, putting a brake on expectations for an economic recovery.」

「At the same time, uncertainty about the outlook remains owing to concerns over a renewed spread of COVID-19, semiconductor supply shortages, soaring raw material prices, reduced automobile production, and slowing growth in the Chinese economy.」

「Regarding the business environment surrounding the Group going forward, continued recovery in capital investment and exports, together with expanding remote work and DX, the acceleration of decarbonisation, and increasing demand toward the achievement of the SDGs, has created conditions that raise hopes for a recovery. However, as concerns over the spread of COVID-19 persist, along with the emergence of geopolitical risks in certain countries and regions, the risk of falling crude oil prices, and concerns over disruption to the global economy resulting from US-China relations, conditions are expected to remain such that optimism is not warranted.」

「During the third quarter of the fiscal year, the Japanese economy initially experienced a sharp slowdown due to the spread of COVID-19. Although signs of a recovery subsequently began to emerge as restrictions on economic and social activity were eased and activities resumed, the arrival of a third wave of infections caused conditions to deteriorate again in many areas, including the employment and income environment, capital investment, exports, personal consumption and inbound demand, making it extremely difficult to forecast the outlook.」

「During the third quarter of the fiscal year, the Japanese economy entered a gradual recovery phase, as corporate earnings and the employment and income environment continued to show signs of improvement owing to the effects of the government's economic measures and monetary policy. However, against a backdrop of unstable international conditions, including the emergence of geopolitical risks in certain countries and regions, slowing growth in China and emerging economies, and concerns over a slowdown in the global economy resulting from the effects of US protectionism, the situation remained uncertain.」

「However, against a backdrop of unstable international conditions, including the emergence of geopolitical risks in certain countries and regions, slowing growth in China and emerging economies, and concerns over a slowdown in the global economy resulting from US-China trade friction and conservatism, the situation remained uncertain.」

「During the first quarter of the fiscal year, the Japanese economy entered a gradual recovery phase, as corporate earnings and the employment and income environment continued to show signs of improvement owing to the effects of the government's economic measures and monetary policy. However, against a backdrop of unstable international conditions, including the emergence of geopolitical risks in certain countries and regions, slowing growth in China and emerging economies, and concerns over a slowdown in the global economy resulting from US-China trade friction, the situation remained uncertain.」

「During the third quarter of the fiscal year, the Japanese economy entered a gradual recovery phase, as corporate earnings and the employment and income environment continued to show signs of improvement owing to the effects of the government's economic measures and monetary policy. However, against a backdrop of unstable international conditions, including the spread of protectionism among countries, slowing growth in China and emerging economies, and concerns over a slowdown in the global economy resulting from US-China trade friction, the situation remained uncertain.」

「During the second quarter of the fiscal year, the Japanese economy remained in a gradual recovery phase, although it was partly affected by natural disasters such as earthquakes, typhoons and heavy rain, as corporate earnings and the employment and income environment showed signs of improvement owing to the effects of the government's economic measures and monetary policy. However, the situation remained uncertain owing to the emergence of geopolitical risks in certain countries and regions, concerns over political and economic developments in the United States and protectionist policies in various countries, and slowing growth in China and emerging economies.」

「During the first quarter of the fiscal year, the Japanese economy entered a gradual recovery phase, as corporate earnings and the employment and income environment continued to show signs of improvement owing to the effects of the government's economic measures and monetary policy. However, against a backdrop of unstable international conditions, including the emergence of geopolitical risks in certain countries and regions, concerns over political and economic developments in the United States and protectionist policies in various countries, and slowing growth in China and emerging economies, the situation remained uncertain.」

「However, the situation remained uncertain, owing to the emergence of geopolitical risks in certain countries and regions, concerns over political and economic developments in the United States and protectionist policies in various countries, and slowing growth in China and emerging economies.」

「During the first half of the fiscal year, the Japanese economy continued on a moderate recovery trend, with improvements in corporate earnings and the employment and income environment, supported by the effects of the government's economic measures and monetary policy. However, conditions remained uncertain due to the emergence of geopolitical risks in certain countries and regions, concerns about protectionist policies in various countries, and slowing growth in China and emerging-market economies.」

「During the first quarter of the fiscal year, the Japanese economy continued on a moderate recovery trend, with improvements in corporate earnings and the employment and income environment, supported by the effects of the government's economic measures and monetary policy. However, conditions remained uncertain due to the emergence of geopolitical risks in certain countries and regions, US political and economic developments, the UK's withdrawal from the EU, and slowing growth in China and emerging-market economies.」

「Although crude oil prices were showing signs of recovering from their decline, conditions remained uncertain due to the emergence of geopolitical risks in certain countries and regions, changes in US political and economic policies, the UK's withdrawal from the EU, and a slowdown in the Chinese and emerging-market economies.」

「Although crude oil prices were showing signs of recovering from their decline, conditions remained uncertain due to the emergence of geopolitical risks in certain countries and regions, the UK's withdrawal from the EU, and a slowdown in the Chinese and emerging-market economies.」

「However, conditions remained uncertain, due to factors including the adverse impact of lower crude oil prices on resource-producing economies, the emergence of geopolitical risks in certain countries and regions, the UK's withdrawal from the EU, and a slowdown in the Chinese and emerging-market economies.」

「However, conditions remained uncertain, due to factors including the adverse impact of lower crude oil prices on resource-producing economies, the emergence of geopolitical risks in certain countries and regions, the UK's withdrawal from the EU, and concerns about the outlook for the Chinese economy.」

「Conditions remained uncertain in the second half of the year, due to factors including the adverse impact of lower crude oil prices on resource-producing economies, the emergence of geopolitical risks in certain countries and regions, and concerns about the outlook for the Chinese economy.」