Japan Service Activity Climbs 0.5% as METI Lifts Outlook

Japan’s services-sector activity continued to expand in June, with the Tertiary Industry Activity Index rising 0.5% from the previous month, according to data released by the Ministry of Economy, Trade and Industry. The gain exceeded the 0.2% increase forecast by economists, though it was slightly below May’s revised 0.6% rise. June marked the third consecutive monthly advance, prompting METI to raise its overall assessment of the sector’s underlying trend. The ministry now judges service activity to be on an improving trajectory, supported by stronger performance in consumer-facing industries and business services. The figures add to evidence that domestic demand is underpinning growth as manufacturers struggle with weaker exports.