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The services sector in Japan continued to expand in June, and at a faster rate, the latest survey from Nikkei showed on Wednesday with a PMI score of 51.4.
That's up from 51.0 in May, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
Individually, output was encouraged by faster growth in new business, but employment advanced at a slower pace.
Margins came under pressure amid rising fuel costs.
Also, Nikkei's composite index climbed to a reading of 52.1 in June from 51.7 in May.
