An index monitoring the services sectors in Japan moved into contraction in April, the latest PMI from Markit Economics revealed on Wednesday - showing a score of 46.4.
That's down from 52.2 in March. A reading above 50 means expansion in a sector, while a score below 50 signals contraction.
It's the second time in three months that the index has fallen - although this time, the decline is squarely connected to the rise in the sales tax.
Output prices were up at a record pace, while business expectations hit their highest level since September.
The composite index came in with a reading of 46.3, down from 52.8 in the previous month.
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