Japan's private sector expanded in April, but largely on the strength in the services sector as factories lagged, reported S&P Global on Wednesday.

The Japan composite purchasing managers index (PMI), a combination of the nation's manufacturing and services sectors, logged at 51.2 in April, up from 48.9 in March, and striking above the 50-mark that separates growth from contraction, reported S&P Global, citing its monthly survey.

However, the Japan manufacturing PMI only rose modestly to 48.7 in April from 48.4 in March, registering still in the red zone, and thus signaling "a deterioration in business conditions for the tenth month in a row, albeit one that was modest overall," advised S&P Global.

In April, manufacturers reported "the steepest drop in new export work for six months," said S&P Global.

In contrast, the Japan services PMI rose to 52.4 in April from 50.0 in March "to indicate a fresh increase in service sector activity across Japan. explained S&P Global.

In April, business growth "was predominantly driven

by the service sector, which moved back into expansion territory in April, as factory output continued to decline," said S&P Global.

The outlook for Japan's private-sector, especially manufacturing, has been made less certain following recent tariffs on Japan's exports implemented by the Trump Administration in Washington.

In early May, the Bank of Japan lowered its forecast for growth of the nation's gross domestic product (GDP) in fiscal 2025 (started April 1) to 0.5% from 1.1%, citing the probable impact of Trump tariffs.

The Japan composite PMI was compiled by S&P Global from surveys sent to 400 manufacturers and also 400 service-sector companies, from April 9 through April 25.