Growth in Japan's service sector slowed in July as the seasonally adjusted Nikkei Japan Services Purchasing Managers' Index slipped to 52.0 from 53.3 in June, IHS Markit said Aug. 3.

Average input prices in the service sector rose again, maintaining a trend since November 2012, as higher labor costs jacked up operating expenses. Output charges edged down for the first time in 2017.

Confidence regarding the year ahead remained at positive levels as companies forecast a boost in sales and demand over the period but the net level of optimism was the lowest recorded since February, the IHS Markit report said.