Service sector expands at slower pace than expected in March

The nation’s service sector employs 90 percent of all workers and include businesses such as retail, construction, financial services and healthcare.

The index dropped to 37.6 during the financial crisis in 2008. 

In the survey, several companies expressed concerns about rising fuel prices, the speed of Japan’s recovery from a recent earthquake and tsunami, and a still sluggish housing market. 

New orders fell slightly along with the employment index, although the survey found employment in the sector is still growing.

The new orders index grew in March for the 20th consecutive month, although there was a slight decrease to 64.1 from 64.4 in February, while the gauge of business activity fell to 59.7 from 66.9.

The group’s employment gauge dropped to 53.7 from 55.6 a month earlier. The index of prices paid declined to 72.1 from 73.3.