Rapid yen appreciation and a slowdown in emerging-market economies, including China

「During the six-month interim consolidated accounting period, tourism-related demand and services consumption remained firm in Japan, while high prices and yen depreciation weighed on personal consumption and other areas, leaving the overall economic outlook uncertain. In the global economy, uncertainty surrounding U.S. tariff policy and continuing geopolitical risks raised concerns about the outlook for future growth.」

「During the fiscal year, Japan’s economy was generally on a gradual recovery trend, with inbound demand recovering and capital investment showing signs of recovery, although cost pressures from persistently high resource prices continued. In the global economy, signs of a shift in monetary policy emerged as inflationary pressure eased. However, the announcement of stronger U.S. tariff policies increased uncertainty in global trade and caused significant fluctuations in the global economy and foreign-exchange markets.」

「During the six-month interim consolidated accounting period, Japan’s economy showed signs of recovery in personal consumption and corporate capital investment. However, economic activity remained uncertain due to volatility in financial markets and uncertainty surrounding interest-rate policy. The global economy was recovering from the slowdown caused by monetary tightening, but concerns remained about persistently high interest rates in the United States and Europe and geopolitical risks. In China, real estate development investment remained sluggish, as did corporate capital investment.」

「During the fiscal year, Japan’s economic growth slowed due to declining personal consumption and economic slowdowns in various countries, despite an increase in corporate capital investment. In the global economy, growth slowed as monetary tightening continued in various countries and geopolitical risks increased. In China, the economy stagnated due to declining exports and a sluggish real estate market.」

「During the first nine months of the current fiscal year, Japan’s economy recovered gradually, supported by increased personal consumption and inbound demand as economic activity normalized after the pandemic, although some weakness was seen due to the prolonged trend of yen depreciation and rising prices caused by higher resource and energy prices. The global economy remained unstable due to continued monetary tightening by various countries to contain inflation, the prolonged invasion of Ukraine, and heightened geopolitical risks arising from the increasingly tense situation in the Middle East. In the United States, the economy remained firm, supported by the recovery in personal consumption resulting from favorable employment conditions and rising wages. In China, the economy slowed due to weak related investment amid a sluggish real estate market and declining domestic and external demand.」

「During the first six months of the current fiscal year, Japan’s economy recovered gradually as personal consumption and inbound demand increased with the normalization of economic activity. However, uncertainty persisted due to concerns such as soaring resource prices and rising prices that could lead to an economic downturn. In the global economy, concerns included heightened geopolitical risks, inflation, and financial instability caused by higher policy rates. Nevertheless, the U.S. economy remained firm, supported by increased personal consumption resulting from favorable employment conditions and rising wages. In China, the economy slowed due to a sharp decline in real estate development investment and weak domestic and external demand.」

「During the first three months of the current fiscal year, Japan’s economy remained uncertain due to persistent global inflationary pressure and declining exports accompanying the slowdown in overseas economies. However, personal consumption and inbound demand increased as the economy normalized, leading to a gradual recovery. In the global economy, growth was supported by personal consumption, but slowed in the United States due in part to a significant decline in manufacturers’ capital investment caused by rising inflation and higher interest rates. In China, the recovery slowed after the lifting of the zero-COVID policy, and conditions remained weak due to sluggish exports of IT-related products and declining capital investment.」

「During the first nine months of the current fiscal year, Japan’s economy continued to expand, supported by solid growth in personal consumption and corporate capital investment. However, economic activity remained uncertain amid concerns that economic slowdowns in various countries, fluctuations in exchange rates and interest rates, and high prices could weigh on the economy. In the global economy, normalization from the pandemic progressed, but economic growth slowed as pandemic-related digital demand subsided and various countries tightened monetary policy.」

「During the first six months of the current fiscal year, Japan’s economy continued to expand as personal consumption recovered and corporate capital investment continued. However, economic activity remained uncertain due to soaring material prices, economic slowdowns in various countries, and the impact of exchange-rate fluctuations. In the global economy, normalization from the pandemic progressed, but economic growth slowed due to rising prices and monetary tightening by various countries to address inflation. In China, economic expansion slowed after the Shanghai lockdown, and exports declined amid the global slowdown in economic growth. In the United States, economic growth slowed as personal consumption began to moderate and monetary tightening reduced capital investment.」

「During the first three months of the current fiscal year, Japan’s economy was expected to shift toward recovery as the COVID-19 situation stabilized. However, economic activity remained uncertain due to the Shanghai lockdown and higher material and energy prices. In the global economy, economic activity in each country was expected to normalize and support recovery, but growth in China slowed significantly after lockdowns were imposed as part of its zero-COVID policy. In the United States, economic growth slowed due to the prolonged Russian invasion of Ukraine and monetary tightening to curb inflation.」

「During the fiscal year, economic activity in Japan remained restricted as various measures were imposed intermittently in response to the spread of COVID-19. However, as normalization from the pandemic progressed, both domestic and external demand began to recover, and the economy continued to recover. In the global economy, recovery continued in the United States and Europe as the transition to living with COVID-19 progressed and supply constraints began to ease. In China, where strict zero-COVID policies remained in place, the economy continued to expand with support from government policy measures.」

「During the first nine months of the current fiscal year, Japan’s economy was expected to shift toward recovery as various restrictions were gradually eased following improvements in the infection situation. However, the emergence of new variants meant that corporate and economic activity remained uncertain. In the global economy, the easing of stringent COVID-19 restrictions led to signs of recovery, but the pace of recovery slowed somewhat in China due to lower automobile production caused by semiconductor shortages and power shortages. In the United States and Europe, economic growth slowed due to renewed infections and difficulties obtaining components.」

「During the first six months of the current fiscal year, Japan continued to experience restrictions on corporate and economic activity as COVID-19 spread again and states of emergency and priority preventive measures were imposed intermittently. Meanwhile, the economy continued to show signs of recovery, supported by increased exports accompanying the recovery of overseas economies and active capital investment by manufacturers in production automation and advanced capabilities.」

「During the first three months of the current fiscal year, the outlook for the Japanese economy remained uncertain. Although COVID-19 vaccinations had begun in earnest and wider vaccination coverage was anticipated, a state of emergency was reissued in response to the renewed spread of infection. In the global economy, the recovery continued in China, supported by government policies, while in the United States and Europe, personal consumption recovered as economic activity gradually resumed with vaccination programs progressing.」

「During the first nine months of the current fiscal year, corporate and economic activity in Japan remained restricted by the impact of COVID-19, and difficult conditions continued. After the state of emergency was lifted, some signs of recovery appeared as a result of government measures to stimulate tourism demand and other initiatives. However, the economic outlook is expected to remain uncertain due to the continued spread of infection in successive waves.」

「During the first six months of the current fiscal year, corporate and economic activity in Japan was restrained by the impact of COVID-19, resulting in continued difficult conditions. Economic activity stagnated due to measures to prevent the spread of infection, and the outlook for the economy remained uncertain.」

「During the first three months of the current fiscal year, the Japanese economy deteriorated rapidly and remained in a difficult situation as the declaration of a state of emergency in response to the spread of the novel coronavirus caused a decline in personal consumption and restricted corporate activities.」

「The global economy and the industrial electronics and mechatronics industries in which our Group operates are expected to remain uncertain due to the continuing uncertainty surrounding political and policy factors resulting from the prolonged U.S.-China trade friction and other factors, as well as the impact of the spread of the novel coronavirus that began at the end of the fiscal year.」

「In the industrial electronics and mechatronics industries in which our Group operates, uncertainty surrounding political and policy factors increased due to the prolonged U.S.-China trade friction, the United Kingdom’s withdrawal from the EU, and other factors, and manufacturers continued to take a cautious stance toward capital investment.」

「In the industrial electronics and mechatronics industries in which our Group operates, uncertainty increased due to the prolonged U.S.-China trade friction, the United Kingdom’s withdrawal from the EU, and other factors, and manufacturers continued to take a cautious stance toward capital investment.」

「During the first three months of the current fiscal year, the Japanese economy recovered gradually, supported by the effects of various government policies amid continued improvement in the employment and income environment. However, exports and production remained weak due to the impact of trade issues on the global economy, the outlook for the Chinese economy, and uncertainty surrounding overseas economies and their policies. In the industrial electronics and mechatronics industries in which our Group operates, the intensification of U.S.-China trade friction increased uncertainty about the global economy, and manufacturers continued to take a cautious stance toward capital investment.」

「In the fiscal year ended March 2019, in addition to the end of the smartphone-related demand cycle, the impact of U.S.-China trade friction and other factors led manufacturers to adopt a cautious stance toward capital investment.」

「In the industrial electronics and mechatronics industries in which our Group operates, demand for automobiles remained firm. However, in the semiconductor-related and industrial machinery industries, economic growth slowed in several Asian countries, including China, due to U.S.-China trade friction, resulting in weaker market conditions than initially anticipated.」

「During the first six months of the current fiscal year, the Japanese economy remained uncertain due to the impact of U.S. political developments, developments in trade issues, and fluctuations in financial and capital markets. However, against the backdrop of the continuing effects of government economic policies, corporate earnings and the employment and income environment improved, and the economy continued on a gradual recovery trend.」

「During the first three months of the current fiscal year, the Japanese economy remained uncertain due to the impact of political developments in the United States and fluctuations in financial and capital markets. However, against the backdrop of the continuing effects of government economic policies, corporate earnings and the employment and income environment improved, and the economy continued on a gradual recovery trend.」

「During the fiscal year, the Japanese economy remained uncertain due to concerns about the impact of U.S. policy developments and other factors. However, as corporate earnings and the employment environment improved, the economy continued on a gradual recovery trend.」

「During the first nine months of the current fiscal year, concerns about uncertainty in overseas economies, particularly in the United States and Europe, and geopolitical risks persisted. Although economic conditions remained uncertain, the economy continued on a gradual recovery trend as corporate earnings and the employment environment improved.」

「During the first six months of the current fiscal year, the Japanese economy remained uncertain due to geopolitical risks in East Asia, as well as the impact of political developments in the United States and Europe and fluctuations in financial and capital markets. However, against the backdrop of the continuing effects of government economic policies, signs of improvement were seen in capital investment and the employment and income environment, and the economy continued on a gradual recovery trend.」

「During the first three months of the current fiscal year, the Japanese economy remained uncertain due to the impact of political developments in the United States and Europe and fluctuations in financial and capital markets. However, against the backdrop of the continuing effects of government economic policies, signs of improvement were seen in capital investment and the employment and income environment, and the economy continued on a gradual recovery trend.」

「However, growing uncertainty surrounding the United Kingdom’s withdrawal from the EU and the policies of the new U.S. administration has made it difficult to assess economic conditions.」

「Growing uncertainty in overseas economies resulting from issues surrounding the United Kingdom’s withdrawal from the EU and changes in the political situation in the United States posed downside risks to economic conditions.」

「The rapid appreciation of the yen had a significant impact on performance. As a result, for the first six months of the current fiscal year, consolidated revenue was ¥50,006 million, down 8.2% year on year; operating profit was ¥1,082 million, down 23.6%; ordinary profit was ¥1,102 million, down 28.7%; and profit attributable to owners of the parent was ¥763 million, down 26.1%. Performance was below the same period of the previous year.」

「The rapid appreciation of the yen and the continued slowdown in emerging-market economies, including China, posed downside risks to economic conditions, and the economy remained in an uncertain environment.」