Service-sector mood improves

Fragile economy: Pedestrians at a business district in Tokyo. Big firms expect conditions to worsen ahead as high fuel prices and a weak yen push up import costs. — Reuters

TOKYO: Japan’s service-sector mood improved to a two-year high but the recovery among manufacturers stalled, according to a closely watched central bank survey – a sign rising raw material costs was weighing on the economy’s recovery from the pandemic.

Big firms expect conditions to worsen ahead as high fuel prices and a weak yen push up import costs, reinforcing expectations Japan will maintain massive fiscal and monetary support to underpin a fragile economy.