Economic outlook clouded by natural disasters and US-China trade friction

「The global economy also remains uncertain due to continuing geopolitical risks, particularly developments in the Middle East, as well as trends in countries' trade and monetary policies and concerns over a slowdown in the Chinese economy, leaving the business environment highly uncertain.」

「食料品やエネルギー価格の上昇に伴う物価高による個人消費への影響、人手不足の深刻化、為替相場の変動等による景気下振れリスクが継続しております。」

「However, uncertainty has increased from previous levels, and uncertainty is rising further due to heightened geopolitical risks, including the unresolved situation in Ukraine and the situation in Iran that emerged in the second half of the fiscal year.」

「During the interim consolidated accounting period, Japan's economy remained uncertain due to persistent price increases and chronic labor shortages, as well as geopolitical risks including US tariff policies and developments in the Middle East.」

「During the current fiscal year, the Japanese economy showed signs of recovery as the lifting of COVID-19 restrictions increased the movement of people and inbound tourism demand recovered. However, concerns remain over higher costs due to rising energy prices, including electricity, and increased personnel expenses.」

「During the cumulative nine months of the current fiscal year, the Japanese economy showed signs of recovery as demand for leisure activities and inbound tourism recovered following the lifting of COVID-19 restrictions. However, concerns remain over a decline in demand due to rising prices and higher costs due to increased personnel expenses.」

「During the cumulative second quarter, Japan's economy saw the impact of higher raw material and energy prices continue amid the worsening situation in Ukraine, while personal consumption regained momentum as activity restrictions were eased and the global economy recovered.」

「During the cumulative first quarter of the current fiscal year, the Japanese economy remained in an uncertain state as economic activity stagnated significantly following the government's declaration of a state of emergency on 7 April in response to the spread of COVID-19. This included calls to refrain from non-essential, non-urgent outings, increased telework, the suspension of operations at stores and leisure facilities, school closures, and the suspension or reduction of operating hours at factories and other facilities.」

「During the fiscal year under review, Japan's economy saw signs of improvement in incomes as efforts were made to address labor shortages, but personal consumption remained in a challenging environment due to the impact of unfavorable summer weather and the October 2019 consumption tax rate increase. In addition, the impact of the spread of COVID-19 emerged in the fourth quarter.」

「The outlook for the global economy remains uncertain due to factors including US-China trade friction, the UK's withdrawal from the EU and worsening Japan-South Korea relations.」

「During the first quarter of the fiscal year, Japan's economy showed signs of recovery in corporate production activity as corporate earnings and employment conditions improved, but the outlook remained uncertain due to concerns over the impact on the domestic economy of US-China trade friction and the consumption tax increase scheduled for this autumn.」

「In recent years, sudden disasters and natural calamities have become more frequent. If manufacturing facilities are damaged by an unforeseen accident, supplies of raw materials are disrupted, or social infrastructure including electricity and logistics functions poorly, the Group’s performance and financial condition may be affected.」

「During the third quarter of the fiscal year, Japan's economy remained on a moderate recovery trend as corporate earnings and employment conditions improved, but the outlook remained uncertain due to the impact of trade friction arising from US trade policy.」

「The economic outlook remains uncertain due to the impact of successive natural disasters on regional economies and the widening US-China trade friction.」