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The results underline the service industry's crucial support for the economy as it continues to anchor growth in the face of a struggling manufacturing sector.
The au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) sank to 48.8 in January from 49.6 in December. The index has remained below the 50.0 threshold separating expansion from contraction since June last year.
«The expansion in private sector business activity remained service-led,» said Usamah Bhatti, economist at S&P Global Market Intelligence, which compiled the surveys.
The country's manufacturing sector has been under pressure for months due to subdued demand in both domestic and key overseas market. The December trade data showed exports to Japan's two largest trading partners fell, down 3% to China and 2.1% to the United States.
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