Uncertainty about the Outlook Due to the Economic Slowdown, Sluggish Personal Consumption and Brexit

「・The outlook for the economy remains uncertain due to persistently high energy and raw material prices, the impact of developments in the Middle East, fluctuations in financial markets and other factors.」

「Meanwhile, energy and raw material prices remained elevated in addition to the impact of US tariff policies and the sluggish Chinese economy, and the outlook for the economy remained uncertain.」

「• Uncertainty has persisted due to concerns over stagnant private consumption resulting from soaring energy and raw material prices caused by the prolonged situation in Ukraine and heightened tensions in the Middle East, including Israel, as well as the prolonged weakness of the yen and continued price increases.」

「During the second quarter of the consolidated cumulative period under review (1 April 2023 to 30 September 2023), social and economic activity moved toward normalization as the classification of the novel coronavirus disease was changed. Meanwhile, uncertainty persisted due to concerns over stagnant private consumption resulting from persistently high raw material and energy prices associated with the prolonged situation in Ukraine, the prolonged weakness of the yen, and continued price increases.」

「Meanwhile, the cost-push inflation caused by elevated procurement prices and logistics costs resulting from soaring raw material and energy prices is expected to continue due to the impact of external-environment factors, including the situation in Ukraine and the prolonged depreciation of the yen. The outlook is therefore expected to remain uncertain.」

「During the second quarter of the consolidated cumulative period under review (1 April 2022 to 30 September 2022), various restrictions were eased and progress was made toward normalizing social and economic activity, despite a resurgence of the novel coronavirus disease. Meanwhile, uncertainty persisted due to concerns over stagnant private consumption amid cost-push inflation caused by the prolonged situation in Russia and Ukraine, soaring raw material and energy prices, and the rapid depreciation of the yen.」

「During the first quarter of the consolidated cumulative period under review (1 April 2022 to 30 June 2022), Japan's economy showed signs of normalization in social and economic activity as various restrictions related to the novel coronavirus disease were eased. Meanwhile, uncertainty persisted due to the worsening situation in Russia and Ukraine and the rapid depreciation of the yen, which led to higher procurement prices and logistics costs caused by soaring raw material and energy prices, as well as concerns that the resulting increase in product prices would cause private consumption to stagnate.」

「Although progress has been made toward normalizing economic and social activity as vaccinations have advanced, uncertainty has persisted due to the impact of higher energy and raw material prices, a sharp depreciation of the yen, and the situation in Russia and Ukraine on the global economy.」

「During the second quarter of the consolidated cumulative period under review, the impact of the novel coronavirus disease continued for an extended period. Although signs of recovery emerged as economic activity gradually resumed, the challenging conditions persisted. In the retail industry, requests from the government and local authorities to refrain from going out and recommendations to work from home brought major changes to consumers' lifestyles. The business environment also remained uncertain due to downside risks to the economy and risks of deterioration in personal income and employment.」

「During the first quarter of the consolidated cumulative period under review, Japan's economy deteriorated sharply due to the impact of the novel coronavirus disease (hereinafter, the “infection”). Even after the government lifted the state of emergency, it remained impossible to foresee when the infection would subside, and a considerable amount of time was expected to be required for the economy to recover. The Company operated in a challenging business environment. The retail industry also saw consumer sentiment weaken and private consumption remain sluggish due to requests from the government and local authorities to refrain from going out and to suspend business operations. Consumer behavior and lifestyles also changed significantly, including increased stay-at-home demand and online shopping resulting from recommendations to work from home, which became necessary amid the infection.」

「During the third quarter of the consolidated cumulative period under review, Japan's economy remained on a gradual recovery path, supported by improvements in employment and income conditions, although exports continued to lack strength. Meanwhile, uncertainty persisted due to overseas economic developments, including US-China trade tensions and heightened tensions in the Middle East, as well as the impact of volatility in the financial and capital markets.」

「During the second quarter of the consolidated cumulative period under review, Japan's economy remained on a gradual recovery path, underpinned by improvements in employment and income conditions and a recovery in private consumption, although a strong recovery in overall exports was unlikely. Meanwhile, uncertainty persisted due to the impact of US-China trade tensions and other factors on the global economy, as well as volatility in the financial and capital markets.」

「During the first quarter of the consolidated cumulative period under review, Japan's economy continued to show weakness in exports and production, among other areas, while employment and income conditions continued to improve, resulting in a gradual recovery. Meanwhile, the outlook remained uncertain, including due to a slowdown in the global economy caused by US-China trade tensions.」

「During the consolidated fiscal year under review, Japan's economy continued to see increased capital investment and improvements in employment and income conditions, supported by solid corporate earnings. However, uncertainty about the outlook increased due to the slowdown in the Chinese economy, US-China trade tensions, the UK's withdrawal from the EU and other factors.」

「During the cumulative consolidated period under review, Japan’s economy continued to see increases in capital investment and improvements in employment and income conditions against a backdrop of solid corporate earnings, but the outlook for the global economy remained uncertain due to trade friction between the U.S. and China, the UK's exit from the EU and other factors.」

「During the cumulative consolidated period under review, Japan’s economy continued to recover moderately against a backdrop of solid corporate earnings and improving employment and income conditions, but uncertainty over the outlook increased further due to the impact on the global economy of escalating trade friction between the U.S. and China and rising prices for crude oil and other raw materials.」

「During the cumulative consolidated period under review, Japan’s economy continued to recover moderately against a backdrop of solid domestic and external demand, but concerns about the global economy became more pronounced due to U.S. import tariffs and escalating trade friction with China.」

「During the consolidated fiscal year under review, Japan’s economy continued to recover moderately against a backdrop of solid domestic and external demand, but remained exposed to concerns including the impact of U.S. import tariffs and geopolitical risks in the Middle East and on the Korean Peninsula. In the domestic consumer environment, personal consumption has been recovering moderately, supported by improvements in employment and income conditions, but consumers’ frugal stance remains entrenched.」

「During the cumulative consolidated period under review, Japan’s economy continued to recover moderately against a backdrop of solid domestic and external demand. Personal consumption also entered a moderate recovery phase, supported by firm employment and income conditions and higher share prices. In the retail industry, consumers’ frugal stance remained entrenched, and the polarization of consumption became increasingly pronounced.」

「During the cumulative consolidated period under review, Japan’s economy continued to recover moderately, supported by solid corporate earnings, but uncertainty over the outlook increased further as instability in the Middle East and on the Korean Peninsula became more pronounced, creating greater geopolitical risk. Domestic consumption entered a moderate recovery phase against a backdrop of improving employment and income conditions, a recovery in inbound demand and a strong equity market, which supported consumer sentiment. However, rising prices and higher social security premiums remained a drag, and consumers’ frugal stance remained entrenched.」

「During the cumulative consolidated period under review, Japan’s economy continued to recover moderately, but uncertainty over the outlook increased further amid concerns over political and economic conditions, including slower growth in emerging countries, instability in the Middle East and on the Korean Peninsula, and the UK's exit from the EU. Domestic consumption showed some improvement in employment and income conditions, but consumers’ increasingly frugal stance meant that consumption lacked strength, and a full recovery in personal consumption remained some way off.」

「During the consolidated fiscal year under review, Japan’s economy remained on a moderate recovery path, but uncertainty over the outlook for the global economy persisted amid political developments in EU countries and policy trends under the new U.S. president, leaving the economy unstable. Although the employment and income environment surrounding the retail industry showed some improvement, consumption overall lacked strength, and a full recovery in personal consumption was still expected to take time.」

「During the cumulative consolidated period under review, Japan’s economy was on a moderate recovery path, but uncertainty over the outlook for the global economy remained, due to factors including the UK's exit from the EU and uncertainty regarding policy trends following the inauguration of the new U.S. president, leaving the overall economy lacking strength. Domestic employment and income conditions remained firm against a backdrop of tightening labor supply and demand, but consumers’ frugal stance remained entrenched, and conditions for the retail industry continued to be difficult.」

「During the cumulative consolidated period under review, Japan’s economy was on a moderate recovery path, but uncertainty over the outlook remained amid global economic concerns caused by downturns in emerging markets and Europe and foreign-exchange risks. In the consumer environment, employee compensation was increasing against a backdrop of improving employment conditions and higher wages, but disposable income remained sluggish due to higher social security and other costs, and personal consumption remained flat.」

「During the cumulative consolidated period under review, Japan’s economy lacked strength in both domestic and external demand, amid sluggish corporate earnings growth resulting from slower economic growth in emerging countries and weak personal consumption. In addition, the UK's exit from the EU in late June caused significant concern in Japan’s financial and equity markets, resulting in a sharp appreciation of the yen and decline in share prices and further increasing uncertainty over the outlook. In the retail industry, conditions remained difficult, with consumer spending stagnating amid a slowdown in inbound demand and increasingly defensive and frugal consumer behavior.」