TOKYO, July 5 Reuters Japan39;s services sector activity expanded at the fastest pace in over eight years in June as the easing of coronavirus curbs boosted sentiment among businesses such as those in tourism.

The pickup in activity is welcome news for a government betting on domestic demand to put the world39;s thirdlargest economy firmly on a recovery track and help overcome production pressures on the country39;s manufacturing industry.

The final au Jibun Bank Japan Services purchasing managers39; index PMI rose to a seasonally adjusted 54.0, marking the fastest pace of expansion since October 2013.

That was stronger than May39;s final 52.6 growth, though it remained below a 54.2 flash reading for June released last month.

Japanese service sector firms reported a solid increase in activity, said Usamah Bhatti, economist at SP Global Market Intelligence, which compiles the survey.

Greater demand for services and rising fuel and raw material prices, however, caused firms39; average input prices to increase at a record pace. Survey data goes back to September 2007.

This pushed firms to raise prices charged for services at the quickest rate since October 2019, said Bhatti.

A resurgence in COVID19 cases overseas, especially in Japan39;s major trading partner China, hindered international sales, according to the survey.

It also showed the fifth straight month of job growth in the services sector, though the rate of job creation was softer than in May.

The…