The services sector in Japan swung to expansion in October, the latest survey from Nikkei revealed on Friday with a PMI score of 50.5.
That's up from 48.2 in September, and it moves above the boom-or-bust line of 50 that separates expansion from contraction.
Individually output increased at firms, supported by a sharp expansion in new orders.
Business expectations were the strongest in six months, while inflationary pressures intensified to the greatest level in eight months.
The report also showed that the composite index jumped to 51.3 in October from 48.9 in the previous month.
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