Tertiary industry activity shrank 0.3 percent in the April-June period from the previous quarter, although the gauge of all-industry activity stayed positive thanks to brisk industrial output, the government said Wednesday.
The all-industry activity index -- considered a barometer of gross domestic product movements -- rose 0.2 percent to 101.3 against the 1995 base of 100, marking a second straight quarterly gain, according to the Ministry of Economy, Trade and Industry.
The tertiary industry activity index fell for the first time in two quarters to 106.3. But the index for output at mines and factories logged a 3.8 percent gain to 95.5, a second successive quarterly rise.
METI attributed the April-June drop in tertiary industry activity primarily to a 4.2 percent slip in telecommunications activity, a 0.8 percent dip in retail activity and a 1.1 percent fall in business services activity.
In June alone, telecommunications activity surged 14.5 percent, due to the launch of high-speed cell phone models.
This failed to prop up the tertiary industry index for the reporting month, however, as other sectors fell amid sluggish business investment and domestic demand.
The index dropped 0.3 percent from May to 106.4, marking a first fall in two months.
The all-industry index edged down 0.1 percent in June to 101.6, also marking a first decline in two months.
Business services suffered a decline of 3.7 percent, partly because companies refrained from investing in leasing equipment.
Wholesale activity shed 1.7 percent as domestic demand for electric machinery remained dull, while retail activity slid 1.5 percent, METI said.