Concerns over foreign exchange market instability and deterioration in export companies' performance resulting from the UK's decision to leave the EU

「In the Mobility Business, some business negotiations were cancelled or postponed from the first quarter onward due to the impact of US tariff measures, but」

「However, the economic outlook remained uncertain due to rising prices, including those of raw materials and energy, and the impact of US tariff policies centered on the automotive industry, which caused a pause in the improvement of corporate earnings. Concerns over the unstable international situation and geopolitical risks also intensified. In the Social and Industrial Business segment, some business negotiations were cancelled or postponed due to the impact of US tariff policies, but sales related to system equipment and products remained firm, supported by negotiations for replacements of IT equipment and other factors.」

「However, the economic outlook remained uncertain due to rising prices, including those of raw materials and energy, against the backdrop of a weaker yen, the unstable international situation, and vigilance over geopolitical risks.」

「However, the economic outlook remained uncertain due to rising prices, including those of raw materials and energy, against the backdrop of a weaker yen, concerns over a downturn in overseas economies, and vigilance over geopolitical risks.」

「However, the economic outlook remained uncertain due to rising prices, including those of raw materials and energy, against the backdrop of a weaker yen, concerns over a downturn in overseas economies, and vigilance over geopolitical risks.」

「During the cumulative second quarter under review, Japan's economy showed signs of a gradual recovery as personal consumption and capital investment continued to recover and corporate earnings generally improved. However, the economic outlook remained uncertain due to rising prices, including those of raw materials and energy, and trends in international financial markets.」

「During the cumulative first quarter under review, Japan's economy showed signs of a gradual recovery as the economy recovered from the COVID-19 pandemic and progress was made in resolving the semiconductor shortage. However, the economic outlook remained uncertain due to rising prices of food, energy and other goods, as well as growing concerns over the financial system.」

「However, the economic outlook remained uncertain due to rising prices of food, energy and other goods resulting from changes in global supply and demand, sharp foreign exchange fluctuations, and growing concerns over the financial system.」

「During the cumulative third quarter under review, Japan's economy showed signs of recovery as measures to balance infection control with socioeconomic activity were implemented amid growing concern over an eighth wave of COVID-19. However, although the government introduced measures, including temporary relief measures for surging electricity, gas and fuel oil prices under its Comprehensive Economic Measures for Overcoming Price Increases and Achieving Economic Revitalization, the economic outlook remained uncertain amid sharp foreign exchange fluctuations and rising prices of energy and other goods resulting from changes in global supply and demand.」

「During the cumulative second quarter under review, Japan's economy showed signs of a gradual recovery as measures to maintain socioeconomic activity supported the economy, despite a rapid resurgence of infections known as the seventh wave of COVID-19. However, the outlook remained uncertain due to concerns over rising consumer prices caused by higher raw material and fuel prices resulting from the situation in Ukraine and other factors, as well as sharp foreign exchange fluctuations accompanying the widening interest rate differential between Japan and the United States following US policy rate hikes.」

「However, the economic outlook remained uncertain due to global supply chain disruptions caused by geopolitical risks related to the situation in Ukraine, soaring energy and raw material prices, shortages of semiconductors and other components, and concerns over a renewed spread of infections caused by new variants.」

「However, the economic outlook remained uncertain due to the continued disruption of global supply chains caused by the risk of new variants and geopolitical risks related to the situation in Ukraine, ongoing shortages of semiconductors and other components, and soaring crude oil and raw material prices.」

「During the cumulative third quarter under review, Japan's economy showed signs of recovery as the fifth wave of COVID-19 subsided and restrictions on socioeconomic activity were gradually eased. However, the emergence of new variants caused the number of new infections to start increasing, while global supply chain disruptions and shortages of semiconductors and other components continued, and the economy remained in a difficult situation.」

「During the cumulative second quarter under review, Japan's economy showed signs of recovery due to positive factors such as progress in vaccinations. However, the resurgence of COVID-19 led to a fourth declaration of a state of emergency and the implementation of priority preventive measures, resulting in restrictions on the movement of people over an extended period. Lockdowns were also implemented in Southeast Asia, and the economy remained in a difficult situation due to continued global supply chain disruptions and shortages of semiconductors and other components.」

「During the cumulative first quarter under review, Japan's economy generally continued to show signs of recovery, but remained weak due to restrictions on the movement of people following repeated declarations of a state of emergency, production adjustments and supply chain disruptions caused by the global semiconductor shortage, and other factors.」

「However, the economic outlook remained unpredictable as the number of infections surged toward year-end and concerns over a third wave increased.」

「After the lifting of the state of emergency, the economy remained in an extremely severe condition, although there were signs of a recovery in personal consumption and improving business sentiment despite continued difficulties, and indications that conditions were beginning to bottom out. However, the outlook remained unpredictable as vigilance over a second wave increased amid a rise in the number of infections.」

「Thereafter, as the global spread of COVID-19 led to restrictions on going out to prevent its spread, entry restrictions on visitors to Japan and factory shutdowns in response to reduced demand, the flow of people, goods and money stagnated, increasing uncertainty regarding the economic outlook.」

「During the nine-month consolidated cumulative period under review, the economy remained on a moderate recovery trend, supported by a moderate increase in capital investment, although weakness in the economy, particularly in manufacturing, intensified further due to the prolonged US-China trade tensions and the slowdown in the global economy.」

「During the six-month consolidated cumulative period under review, the economy remained on a moderate recovery trend, supported by improved corporate earnings and a moderate increase in capital investment. However, as the global economy continued to slow amid prolonged US-China trade tensions, the economic outlook became increasingly uncertain, with business sentiment in manufacturing deteriorating.」

「However, against the backdrop of US-China trade tensions and the slowdown in the Chinese economy, business sentiment became more cautious, particularly in manufacturing, and the economic outlook became increasingly uncertain, with real wages and the average agreed summer bonus at major companies both declining year on year.」

「During the consolidated fiscal year under review, capital investment increased and corporate earnings improved as exchange rates remained stable. However, in the second half, the economy became more uncertain as intensifying US-China trade tensions and the slowdown in the Chinese economy led to worsening business sentiment among some export-oriented companies.」

「During the nine-month consolidated cumulative period under review, the Japanese economy remained on a moderate recovery trend, supported by improvements in employment and income conditions and corporate earnings, including a growing sense of labor shortages in companies and a moderate increase in real total employee income. However, uncertainty regarding the economic outlook remained, including concerns over deteriorating earnings at export-oriented companies as the exchange rate shifted from a trend toward yen depreciation to yen appreciation, and weaker willingness to invest in capital as domestic stock prices declined after peaking in October.」

「However, the economic outlook remained uncertain due to factors including higher crude oil prices, uncertainty in overseas economies and volatility in the financial and capital markets.」

「However, uncertainty regarding the economic outlook has increased due to factors including uncertainty in overseas economies and volatility in the financial and capital markets.」

「Although attention must be paid to the impact of uncertainty in overseas economies and volatility in the financial and capital markets, the economy appeared to remain on a recovery trend, supported by improved corporate earnings and a moderate increase in capital investment, among other factors.」

「Although attention must be paid to the impact of uncertainty in overseas economies and volatility in the financial and capital markets, the economy appeared to remain on a recovery trend, supported by improved corporate earnings and a recovery in capital investment, among other factors.」

「Although some instability was present in parts of the US financial markets, the economy appeared to remain on a recovery trend, supported by improved corporate earnings and a recovery in capital investment.」

「During the consolidated fiscal year under review, the yen generally appreciated in the first half due in part to the UK's decision to leave the EU, but corporate earnings and business sentiment improved as the yen weakened following the US presidential election in November. However, amid heightened international tensions, the yen has been moving gradually toward appreciation, and the economic outlook remains uncertain due to factors including the normalization of US monetary policy and the impact of the US administration's policy direction.」

「During the nine-month consolidated cumulative period under review, stock prices generally continued to rise and the yen generally weakened following the US presidential election in November. Capital investment showed signs of stalling after a recovery, but corporate business sentiment improved moderately, and the economy appeared to continue on a moderate recovery trend. However, the economic outlook remained uncertain, including because of the impact of policy changes following the launch of the new US administration.」

「During the six-month consolidated cumulative period under review, the Japanese economy saw a prolonged trend toward yen appreciation, giving rise to concerns over deteriorating performance at export-oriented companies. Meanwhile, capital investment showed signs of stalling after a recovery, although corporate earnings remained strong, and the economy appeared to continue on a moderate recovery trend despite weakening. However, the economic outlook remained uncertain due to exchange-rate instability, concerns over deteriorating corporate earnings resulting from the prolonged trend toward yen appreciation, and developments in the US economy and monetary policy following the US presidential election.」

「However, uncertainty about the economic outlook increased due to exchange-rate instability resulting from the UK's decision to leave the EU and concerns over deteriorating performance at export-oriented companies, among other factors.」