TOKYO, June 5 (Reuters) - Japan's service sector activity expanded at a record pace in May, a private-sector survey showed on Monday, thanks to a recovery in overseas demand and a surge of foreign tourists as pandemic restrictions were eased further.
"The upward trend looks set to continue in the near and medium term," as outstanding business expanded at a record rate and business optimism held near an all-time high.
The subindex measuring outstanding business rose at the fastest pace on record as disruptions caused by the pandemic continued to wane.
Business expectations for the coming year remained robust, though the pace of increase slowed slightly from April, the survey showed.
The composite PMI, which combines the manufacturing and services activity figures, expanded at the fastest pace since October 2013.
Persons:
Usamah Bhatti, Kaori Kaneko, Kim Coghill
Organizations:
Jibun Bank Japan Services, P Global Market Intelligence, Service, PMI, Thomson
Locations:
TOKYO, Japan