Japan's service sector activity expanded at a slightly slower pace in July as new business growth eased and cost pressures remained high, but the overall performance of the sector stayed solid amid the fading impact of COVID-19, a private-sector survey showed on Thursday.
The final au Jibun Bank Japan Services purchasing managers' index slipped to a seasonally adjusted 53.8 last month from 54.0 in June. The pace of growth in July eased to the slowest since January.
Respondents of the survey cited some concern as new business growth slowed and outstanding business fell. The subindex for new business grew at the slowest pace in six months with some firms saying the loss of national travel subsidies weighed on their sales. Outstanding business slipped below the 50.0 threshold for the first time since July last year partly on a fall in new contracts and economic uncertainty.
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