Group 1 - Japanese manufacturing confidence has declined in June, with a manufacturing sentiment index dropping to +6 from +8 in May, and is expected to further decrease to +2 in the next three months, indicating a cautious outlook due to uncertainties in U.S. tariff policies and weak demand in major Asian markets [1] - The survey conducted from June 4 to June 13 included 504 large non-financial companies, with 220 providing anonymous feedback, showing that optimistic respondents still outnumber pessimistic ones [1] - The Japanese government is in intensive negotiations with the U.S. to eliminate tariffs on its goods, particularly the 25% tariff on automobiles and parts, as companies express caution regarding new capital expenditures due to unclear impacts of U.S. tariff policies [1] Group 2 - The non-manufacturing sentiment index remained stable at +30 in June, with expectations of a decline to +24 in the next three months, driven by active investments in information technology and growth in inbound tourism benefiting the service sector [2] - Challenges such as rising labor costs and labor shortages continue to affect some businesses, despite overall signs of moderate economic recovery [2] - The Bank of Japan has maintained the benchmark interest rate at 0.5% for the third consecutive time, emphasizing the importance of close monitoring in light of increased uncertainties in global economic conditions, particularly regarding trade policies [2]