SummaryManufacturers' sentiment index +6 in June vs +8 in MayService sector index unchanged at +30Both manufacturers, non-manufacturers mood seen weakening TOKYO, June 18 (Reuters) - Japanese manufacturers grew less confident about business conditions in June and expressed caution about the outlook for the next three months, citing U.S. tariff uncertainties and weak Chinese demand, a Reuters Tankan poll showed. The monthly poll, which tracks the Bank of Japan's quarterly business sentiment index, recorded a manufacturers' index of plus 6 in June, down from plus 8 in May. The index is projected to decline further to plus 2 in the coming three months, though it remains in positive territory, signalling that optimists still outnumber pessimists. Advertisement · Scroll to continue The poll, conducted between June 4-13, surveyed 504 major non-financial companies, with 220 responding on condition of anonymity. Japan has been in intensive negotiations with the United States to fully remove tariffs on its goods, including a 25% duty on automobiles and auto parts, Japan's biggest industry. "Our clients continue to be cautious about fresh capital expenditure as the Chinese economy has been sluggish and the impact of U.S. tariff policies remains unclear," a manager at a machinery maker wrote in the survey. Those in the automobiles and auto parts sector also voiced tariff concerns. "Automakers are reducing production due to the U.S. tariff policies," a manager in the sector said. Advertisement · Scroll to continue A chemicals firm manager said that a client automaker had shifted domestic production to the U.S. to mitigate tariff costs. As a result, sales to the automaker have dropped, the manager said. A pulp and paper maker flagged issues stemming from China's rare earth export curbs, which client companies are scrambling to address and which could affect demand for its products. For the service sector, the business sentiment index stood at plus 30 in June, unchanged from May. Companies expect sentiment to weaken to plus 24 in the coming three months. The information and telecommunications sector reported clients' active information technology investments. Inbound tourism helped boost business confidence among services firms. However, rising labor costs and shortages weighed on some businesses, the survey found. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV589930 About ConnatixV589930 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by Makiko Yamazaki; Editing by Jacqueline Wong Purchase Licensing Rights