Growing economic uncertainty and weaker corporate appetite for IT investment

「Meanwhile, uncertainty about the outlook persisted due to elevated energy and raw material prices resulting from heightened geopolitical risks, including tensions in the Middle East, as well as foreign exchange volatility, developments in U.S. trade policy, and higher costs associated with rising personnel expenses.」

「The impact of rising prices and geopolitical risks on corporate performance remains uncertain.」

「Meanwhile, uncertainty persisted as the impact of continued inflation caused by soaring energy and raw material prices and volatility in financial and capital markets compounded risks to Japan's economy, including US trade policy developments and ongoing geopolitical risks.」

「Meanwhile, uncertainty persisted as the impact of rising energy and raw material prices, continued inflation and volatility in financial and capital markets compounded risks to Japan's economy, including US trade policy developments, continuing geopolitical risks in Ukraine and the Middle East, and stagnation in the Chinese economy.」

「Meanwhile, uncertainty persisted as the impact of rising prices and volatility in financial and capital markets compounded the risk that a downturn in overseas economies, including US policy developments, continued high interest rates in Europe and the ongoing stagnation of the Chinese economy, would weigh on Japan's economy.」

「Looking ahead, in addition to the risk that a downturn in overseas economies, including continued high interest rates in the United States and Europe and concerns about the outlook for the Chinese economy, will weigh on Japan's economy, the impact of rising prices and volatility in financial and capital markets requires close attention.」

「Looking ahead, the risk that a downturn in overseas economies, including the impact of global monetary tightening and concerns about the outlook for the Chinese economy, will weigh on Japan's economy remains. In addition, the impact of rising prices, geopolitical risks and volatility in financial and capital markets requires close attention.」

「During the first nine months of the fiscal year (1 February 2023 to 31 October 2023), the Japanese economy recovered gradually as employment and income conditions improved and various policies took effect. However, the outlook remains subject to the risk that a downturn in overseas economies, including concerns about stagnation in the Chinese economy, will weigh on domestic economic conditions. The impact of rising prices, conditions in the Middle East and volatility in financial and capital markets also requires close attention.」

「However, as global monetary tightening continues, a downturn in overseas economies is posing a downside risk to domestic economic conditions. In addition, rising prices and volatility in financial and capital markets require close monitoring, and the outlook remains uncertain.」

「During the first three months of the fiscal year (1 February 2023 to 30 April 2023), the Japanese economy showed signs of recovery as economic activity normalized under various policies despite the ongoing impact of COVID-19. However, as global monetary tightening continues, a downturn in overseas economies is posing a downside risk to domestic economic conditions. In addition, domestic inflation, supply-side constraints and volatility in financial and capital markets require close monitoring, and the outlook remains uncertain.」

「The Japanese economy showed signs of a gradual recovery as economic activity normalized due to measures against COVID-19 and the effects of various government policies. However, the outlook remains uncertain as risks including yen depreciation caused by global monetary tightening, domestic inflation, supply-side constraints and volatility in financial and capital markets persist.」

「However, the outlook remains uncertain amid concerns about a renewed spread of COVID-19 infections, soaring raw material prices and a sharp depreciation of the yen accompanying accelerating global inflation, as well as geopolitical risks.」

「However, the outlook has become uncertain as global monetary tightening accelerates and volatility in financial and capital markets, rising raw material prices and supply-side constraints weigh on conditions.」

「During the first three months of the fiscal year (1 February 2022 to 30 April 2022), the Japanese economy saw a broadening trend toward the resumption of investment amid a gradual economic recovery as the severe conditions caused by COVID-19 eased. At the same time, geopolitical risks related to the situation in Ukraine and elsewhere were a concern in addition to semiconductor supply shortages, while the impact of soaring raw material prices and volatility in financial and capital markets required close monitoring.」

「During the fiscal year, the Japanese economy saw a broadening trend toward the resumption of investment amid a gradual economic recovery as COVID-19 vaccination progressed. However, the outlook remains uncertain due to the recent spread of infections caused by new variants, semiconductor supply shortages and soaring raw material prices.」

「During the first nine months of the fiscal year, the Japanese economy saw a broadening trend toward the resumption of investment that had been postponed during the COVID-19 pandemic, particularly in the manufacturing sector, against the backdrop of a recovery in overseas economies. However, the outlook for domestic economic conditions remains uncertain due to semiconductor supply shortages and soaring raw material prices.」

「During the first six months of the fiscal year, the Japanese economy remained on a recovery path, led by the manufacturing sector, where exports were strong against the backdrop of a recovery in overseas economies. However, the outlook for domestic economic conditions remains uncertain due to the renewed spread of infections caused by COVID-19 variants and the growing shortage of semiconductor supplies.」

「During the first quarter of the consolidated fiscal year under review, the recovery trend in Japan continued, led by export-driven manufacturers benefiting from the recovery of overseas economies. However, the outlook for the domestic economy remained difficult to predict because of the nationwide spread of COVID-19 variants and the emergence of semiconductor supply shortages.」

「Japan's economy stagnated because of the impact of COVID-19. Although signs of a partial recovery emerged, helped by the effects of government economic support measures and improvements in overseas economies, the renewed spread of infections in Japan and overseas left conditions extremely difficult.」

「Economic activity gradually resumed after the state of emergency was lifted, and signs of a partial recovery emerged, helped by the effects of government economic support measures and improvements in overseas economies. However, the outlook remains uncertain as the end of the situation cannot be foreseen, including because of a renewed spread of infections in Europe and the US.」

「In the information services industry, demand continued to grow for the use of cloud services suited to the COVID-19 era and for the development and enhancement of telework environments. Demand for strategic IT investment to strengthen and transform businesses, in addition to productivity improvements, automation, and labor-saving measures, also remained solid. However, as economic activity restrictions continued for an extended period and corporate performance deteriorated amid the economic downturn, some companies began selecting and prioritizing investment areas, and the situation remained difficult to predict.」

「During the first quarter of the consolidated fiscal year under review, the impact of COVID-19 spread worldwide, substantially constraining economic activity through restrictions on movement in Japan and overseas, the suspension of production activities, the cancellation or scaling back of various events, and people refraining from going out.」

「The economy faces major sources of uncertainty on both the political and economic fronts, including US-China trade issues, geopolitical risks in East Asia and the Middle East, and concerns that the spread of the novel coronavirus will stall economic activity. A more cautious assessment of the economic outlook is therefore required.」

「Meanwhile, uncertainty over the economic outlook has increased further because of concerns about investment restraint, particularly among export-related companies, resulting from US-China trade friction, the UK's EU withdrawal issue, and the emergence of geopolitical risks in East Asia and the Middle East.」

「Meanwhile, uncertainty over the economic outlook has increased further because of concerns about investment restraint, particularly among export-related companies, resulting from US-China trade friction, as well as the emergence of geopolitical risks in East Asia and the Middle East.」

「Meanwhile, uncertainty over the economic outlook has increased, with concerns that US-China trade friction will restrain investment, particularly among export-related companies.」

「Although the outlook remained uncertain because of US-China trade friction, the UK's EU withdrawal issue, and geopolitical risks in East Asia, the economy remained on a gradual recovery trend, with improvements in corporate earnings and the employment and income environment and a recovery in private consumption.」

「During the first 3 quarters of the consolidated fiscal year under review, Japan's economy remained on a gradual recovery trend, with improvements in corporate earnings and the employment and income environment and a recovery in private consumption, despite uncertainty over the outlook resulting from geopolitical risks and US-China trade friction.」

「During the first quarter of the consolidated fiscal year under review, Japan's economy became more uncertain because of geopolitical risks and concerns about worsening trade friction originating overseas. However, supported by a weaker yen amid solid global economic growth, corporate earnings, particularly among export-related companies, remained strong, and the overall economy continued its gradual recovery.」

「However, the global economy continues to face numerous sources of uncertainty, including future political and economic developments in the US and EU countries, concerns about slower growth in China and emerging-market economies, and geopolitical risks in the Middle East and East Asia. The outlook therefore remains uncertain.」

「However, the global economy continues to face numerous sources of uncertainty, including future political and economic developments in the US and EU countries, concerns about slower growth in China and emerging-market economies, and geopolitical risks in the Middle East and East Asia. The outlook therefore remains uncertain.」

「However, the global economy continues to face numerous sources of uncertainty, including US policy developments, future developments in EU countries, concerns about slower growth in China and emerging-market economies, and geopolitical risks in the Middle East and East Asia. The outlook therefore remains uncertain.」

「However, the global economy continues to face numerous sources of uncertainty, including US policy developments, future developments in EU countries, concerns about slower growth in China and emerging-market economies, and geopolitical risks in the Middle East and East Asia. The outlook therefore remains uncertain.」

「However, depending on developments in political events continuing overseas, including the policies of the new US president, the direction of the UK's withdrawal process from the European Union (EU), and scheduled presidential elections in advanced European economies, the global situation is expected to become increasingly uncertain. With the global economy deeply interconnected, the risks of downward pressure on Japan's economy are increasing further.」

「However, with the policies of the new US president, the UK's implementation of its exit from the EU, and presidential elections in advanced European economies such as France and Germany still ahead, the global situation is becoming increasingly unstable, and the risks of downward pressure on Japan's economy are increasing further.」

「However, the outlook remains more uncertain than before because of disruption in the stock market following the UK's decision to leave the EU, the yen's appreciation, and concerns about a slowdown in the global economy, particularly in China and emerging markets.」