Japan's tertiary industry activity index rose a seasonally adjusted 0.4% month on month in July, according to data from the Ministry of Economy, Trade and Industry (METI) released on Tuesday.
The reading beat the consensus forecast of a 0.3% increase tracked by Trading Economics, and rebounded from a 0.2% decrease in the previous month.
The monthly performance was driven primarily by a rise in the value of lifestyle and entertainment-related services, which increased 3.4%, and retail, which rose 2.1%.
Transportation and postal services climbed 1.8%, while financial and insurance services fell 3.0% and medical care and welfare declined 1.5%.