Positive business sentiment among Japan’s major manufacturers declined in the three months to March, reflecting mounting trade tensions, a Bank of Japan (BOJ) survey showed. The headline index of big manufacturers’ confidence fell to +12 from +14 in December, in line with market expectations. Capital expenditure plans for the current fiscal year show a modest 3.1% increase, down from an 8.7% rise the previous year. The results come ahead of the BOJ’s May 1 policy meeting, when it will review growth and inflation forecasts. Despite the uncertainty, companies expect inflation to stay above the central bank’s 2% target over the next five years. The survey, conducted from Feb. 26 to March 31, reflects concerns over US tariff policies and escalating global trade disputes.