Business Environment Instability From Yen Appreciation, Falling Share Prices and Slowing Emerging-Market Economies

「During the interim consolidated accounting period from 21 February 2026 to 20 August 2026, the Japanese economy remained uncertain, owing to soaring raw-material prices and inflation resulting from the unstable international situation and yen depreciation, as well as rising energy costs and increased labor-cost burdens.」

「During the interim consolidated accounting period from 21 February 2026 to 20 August 2026, the Japanese economy remained uncertain, owing to soaring raw-material prices and inflation resulting from the unstable international situation and yen depreciation, as well as rising energy costs and increased labor-cost burdens.」

「As prices continue to rise, growth in consumers’ real wages has remained weak, defensive attitudes toward household spending remain firmly entrenched, and consumers are becoming more selective in their purchases. The outlook remains uncertain due to the persistent labor shortage, fluctuations in energy prices, the details and timing of economic measures such as consumption-tax cuts, and continuing instability in the international situation.」

「As prices continue to rise, growth in consumers’ real wages has remained weak, defensive attitudes toward household spending remain firmly entrenched, and consumers are becoming more selective in their purchases. The outlook remains uncertain due to the persistent labor shortage, fluctuations in energy prices, the details and timing of economic measures such as consumption-tax cuts, and continuing instability in the international situation.」

「Prices have continued to rise while wage growth has failed to keep pace, and real wages have continued to decline, leaving consumers increasingly focused on protecting their household finances. Corporate hiring conditions are also difficult, and labor shortages have become more serious. In addition, with rice prices declining following the release of government rice reserves and political conditions becoming unstable, the economic environment remains uncertain.」

「During the interim consolidated fiscal period (from 21 February 2024 to 20 August 2024), domestic and overseas markets surrounding the company's business remained uncertain because of global inflation and higher interest rates, exchange-rate fluctuations, sustained increases in resource and energy prices, and the emergence of prolonged geopolitical risks.」

「However, in Japan, the recovery in private consumption has been delayed by high prices and stagnant real wages. Globally, the wave of high inflation remains persistent, while supply-chain vulnerabilities have become more apparent as geopolitical tensions intensify. Downside risks to the domestic and global economies arising from the uncertain global situation remain, and the outlook continues to be uncertain.」

「During the current consolidated fiscal year, the Japanese economy entered a gradual recovery trend as social and economic activity normalized following the reclassification of COVID-19 as a Category 5 infectious disease. However, consumers' efforts to protect their household finances have intensified more than ever amid concerns about the unstable international situation, persistently high resource, energy and raw material prices, and rising consumer prices, and uncertainty continues.」

「Although a recovery was expected as COVID-19 was reclassified as a Category 5 infectious disease, consumers' efforts to protect their household finances have intensified further amid concerns about persistently high energy prices and rising prices, and uncertainty continues.」

「Economic activity became more vibrant as COVID-19 was finally brought under control following its reclassification under the Infectious Diseases Control Law as a Category 5 infectious disease. However, the outlook remains uncertain because of the prolonged invasion of Ukraine by Russia, the resulting surge in raw material and energy prices, and the risk of weaker consumption as rising prices driven by exchange-rate fluctuations increase pressure on household budgets.」

「During the current consolidated fiscal year, the Japanese economy remained in difficult conditions because restrictions and stagnation in economic activity caused by COVID-19 continued. However, expectations for an economic recovery were beginning to rise as the number of infections showed a declining trend with the wider rollout of vaccinations. At the same time, the effects of the global semiconductor shortage and soaring resource prices became increasingly pronounced, and the outlook remained uncertain.」

「During the cumulative third quarter of the current consolidated fiscal period, the Japanese economy showed signs of a gradual recovery as restrictions on economic activity related to COVID-19 were eased. However, the outlook remains uncertain because of the prolonged invasion of Ukraine by Russia, the resulting surge in raw material and energy prices, the yen's continued depreciation and rising prices.」

「During the cumulative second quarter of the current consolidated fiscal period, the Japanese economy continued to be affected by COVID-19. Although restrictions on activities were eased, social life was affected, with some stores and public transportation operators unable to secure sufficient staff because of the increase in infections. In addition, the effects of COVID-19 and the invasion of Ukraine have driven up raw material and energy prices and caused prices to rise as a result of the yen's sharp depreciation, leaving the outlook uncertain.」

「However, the global economy faces various factors, including the impact of China's zero-COVID policy and the situation in Ukraine on supply chains, as well as the yen's sharp depreciation, leaving the outlook uncertain.」

「During the current consolidated fiscal year, the Japanese economy remained in difficult conditions because restrictions and stagnation in economic activity caused by the global spread of COVID-19 continued. However, expectations for an economic recovery were beginning to rise as the number of infections showed a declining trend with the wider rollout of vaccinations. At the same time, the effects of the global semiconductor shortage and soaring resource prices became increasingly pronounced, and the outlook remained uncertain.」

「Recently, the number of infections has declined as vaccination rates for COVID-19 have increased, and expectations for economic recovery have risen following the lifting of the state of emergency. However, with more countries overseas experiencing renewed outbreaks and the possibility of the spread of new variants, the outlook remains difficult to predict.」

「During the cumulative second quarter of the current consolidated fiscal period (from 21 February 2021 to 20 August 2021), the Japanese economy remained uncertain as the prolonged and renewed spread of COVID-19 led to another declaration of a state of emergency and restrictions on many activities. Although the government-led vaccination programme began, there was still no clear prospect of the situation coming under control.」

「From the end of last year, the number of new cases began rising again, and the state of emergency was reissued in April 2021. With no signs of the situation coming under control, the outlook for the economy remains uncertain.」

「During the cumulative third quarter of the fiscal year from 21 February 2020 to 20 November 2020, Japan's economy became extremely challenging as business activities were restricted and the economy deteriorated rapidly due to the spread of COVID-19.」

「During the cumulative second quarter of the fiscal year, Japan's economy deteriorated rapidly as economic activity weakened due to the impact of the consumption tax rate increase implemented in October 2019 and the spread of COVID-19.」

「In Japan, a request was issued on 27 February for the temporary closure of all elementary, junior high and high schools nationwide, and on 7 April the government declared a state of emergency in 7 prefectures, subsequently expanding it nationwide. The state of emergency was lifted nationwide on 25 May, and economic activity resumed, but the recovery was slow. With concerns about a second wave of infections, the economic outlook under the “new lifestyle” remained uncertain.」

「During the cumulative second quarter of the fiscal year, Japan's economy was gradually recovering on the back of improving employment and income conditions and corporate earnings. However, exports and capital investment remained sluggish amid an uncertain economic environment, including rising tensions over trade issues. Although positive growth was maintained, the recovery lacked strength.」

「During the cumulative first quarter of the fiscal year, Japan's economy was gradually recovering on the back of improving employment and income conditions and corporate earnings. However, exports and capital investment remained sluggish amid an uncertain economic environment, including a slowdown in the global economy and US-China trade friction. Although positive growth was maintained, the recovery lacked strength. The economic outlook is also becoming more uncertain due to the impact of the consumption tax increase scheduled for October this year.」

「During the consolidated fiscal year, Japan's economy continued on a moderate recovery trend, but the outlook remained uncertain amid strong consumer thrift, overseas political conditions, rising raw-material prices and the effects of natural disasters.」

「During the cumulative third quarter of the fiscal year, Japan's economy continued on a moderate recovery trend, but the outlook remained uncertain amid strong consumer thrift, overseas political conditions, rising raw-material prices and the effects of natural disasters.」

「During the cumulative second quarter of the fiscal year, Japan's economy continued on a moderate recovery trend as corporate earnings improved and employment and income conditions gradually recovered. However, the outlook remained uncertain amid strong consumer thrift, overseas political conditions, rising raw-material prices, and the effects of natural disasters, including the Northern Osaka earthquake in June, the heavy rains in western Japan in July, and record heat in August.」

「Although corporate earnings and employment continued to improve and the economy remained on a moderate recovery trend, the outlook remained uncertain amid concerns about overseas political conditions and rising raw-material prices.」

「The recovery in private consumption was limited as higher social security burdens resulting from changes to the social security system and higher prices for some food products placed pressure on household finances and heightened consumers' defensive attitude toward their livelihoods. The economic outlook remained uncertain.」

「During the cumulative third quarter of the fiscal year, Japan's economy continued on a moderate recovery trend, but the recovery in private consumption was limited as higher social security burdens resulting from changes to the social security system and higher prices for some food products placed pressure on household finances and heightened consumers' defensive attitude toward their livelihoods. The economic outlook remained uncertain.」

「Japan's economy remained on a moderate recovery trend, supported in part by the government's economic measures, but the outlook remained uncertain due partly to the emergence of geopolitical risks overseas.」

「The outlook for the economy remained uncertain amid concerns about the impact on the global economy of an economic slowdown in emerging markets, including China, the North Korea issue, and policies of the new US administration.」

「During the consolidated fiscal year from 21 February 2016 to 20 February 2017, Japan's economy remained on a moderate recovery trend, with corporate earnings recovering and employment conditions improving. However, it remained uncertain due in part to downturns in emerging-market economies, including China, and overseas factors such as the UK's issue of leaving the EU.」

「During the cumulative third quarter of the fiscal year, Japan's economy remained uncertain. Corporate earnings recovered and capital investment and employment and income conditions continued to improve, but economic growth, particularly in emerging markets, slowed and the UK's issue of leaving the EU caused sharp fluctuations in foreign exchange rates and share prices.」

「During the cumulative second quarter of the fiscal year, Japan's economy remained uncertain. Corporate earnings recovered and capital investment and employment and income conditions continued to improve, but economic growth, particularly in emerging markets, slowed and disruption to overseas economies spread due to the UK's issue of leaving the EU.」

「Although corporate earnings and employment and income conditions improved, the business environment remained unstable due to the yen's appreciation from the beginning of the year, continued share-price declines and slower growth in emerging-market and resource-rich economies.」