TOKYO, April 10 (Xinhua) -- Sentiment in Japan's service sector dropped in March, marking the third consecutive month of decline, a Cabinet Office survey showed on Monday.
The monthly Economy Watchers survey's diffusion index, in which a score of more than 50 means people view current economic conditions in a positive light, fell 1.2 points to 47.4.
The Cabinet Office said that of those surveyed, some in the restaurant sector had experienced labor shortages, while those across other service sectors also felt economic conditions had not improved from a month earlier, citing rising purchase prices.
Looking ahead, the Cabinet Office said conditions in the service sector would remain pressured, with the sentiment index for economic conditions in the coming months falling 2.5 points from February to 48.1.
The Economy Watchers Survey asks business-cycle sensitive workers their thoughts on existing and future economic conditions to provide the government with a detailed picture of economic trends in Japan.
Segments of the economy surveyed include sectors such as retail, restaurant service and taxi driving, and the monthly report serves as both a consumer confidence indicator and a leading indicator for the rest of the economy.
The decline in March was due to fewer people saying things were getting "better" or "slightly better" and more people seeing conditions as being either unchanged or "worse."
The survey was conducted on March 25-31, and polled 2,050 workers across Japan.
