Business activity across Japan's service sector expanded in August, with the final Japan Services Purchasing Managers' Index (PMI), compiled by S&P Global, coming in at 52.5, according to data released on Thursday.
The final reading, which serves as a key metric for the country's services sector, beat the flash estimate of 52.3 and compared with the 51.2 recorded in the previous month.
A reading above 50 indicates an overall expansion in service sector activity, while a figure below signals a contraction.
The monthly momentum was primarily driven by stronger domestic demand, with more new work, public-sector projects, and a higher volume of client inquiries supporting the upturn in business activity.
Employment growth eased for the second straight month to its slowest pace in a year and remained marginal, while outstanding business accumulated only slightly.