The index of tertiary industry activity in Japan fell 0.4 percent in fiscal 2002 from the previous year, due to sluggish business in the financial and insurance sectors and the transport and communication sectors.
The Ministry of Economy, Trade and Industry said Friday the index came to 106.3 against the 1995 base of 100, the first drop in four years.
The financial services industry dropped 4.1 percent and the insurance sector declined 1.6 percent, reflecting their sagging business conditions, METI said in its preliminary report.
The services sector expanded 0.6 percent, while utilities -- electricity, gas and water supply -- rose 1.9 percent.
The index of all industrial activity, a supply-side gauge of economic growth, rose 0.1 percent to 101.5 in fiscal 2002, marking the first increase in two years.
For March alone, the index of tertiary industry activity expanded a seasonally adjusted 0.5 percent to 106.5 from February, posting the first rise in two months.
Except for the financial, insurance, transport and communication sectors, all other sectors in the tertiary industry rose in March.
The electricity industry rose 3.5 percent, while the gas industry was up 5.8 percent because of lower-than-usual temperatures in March, a METI official said.
The index on all industrial activity also marked an expansion, up 0.7 percent from the previous month.
"In March, the figures themselves are good, but the contents are not really good," the official said. "We need to observe developments cautiously."