The business mood in Japan's service-sector soured in June as the lower yen pushed costs higher, a quarterly central bank survey showed Monday, offsetting a big lift in factory confidence and pointing to weakness in consumption.
A rare, unscheduled downgrade to Japan's historical gross domestic product data also showed the economy shrank more than reported in the first quarter, which will likely force the Bank of Japan to cut its growth forecasts later this month.
The findings, which come ahead of the BOJ's next policy meeting on July 30 and 31, complicates its decision on how soon to raise interest rates, analysts say.