Business activity across Japan's private sector expanded at a faster rate in August, with the final Composite Purchasing Managers' Index (PMI), compiled by S&P Global, coming in at 53.5, according to data released on Thursday.
The latest print, which tracks combined output across both the manufacturing and service sectors, rose from 52.7 in the previous month.
A reading above 50 indicates an overall expansion in private sector activity, while a figure below signals a contraction.
Overall new business rose at a sharper rate, with the acceleration among the quickest seen over the past three years. Outstanding business increased further, S&P added.
Employment rose modestly as firms added workers amid stronger activity and a further accumulation of backlogs. Input cost inflation remained sharp, although the rate of increase eased to its lowest since March.
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