TOKYO (Reuters) - Japan's factory activity contracted slightly in July as output and new orders fell and firms remained under pressure from higher prices, a business survey showed on Wednesday.
But the expansion in the service sector helped overall activity in Japan's private sector return to growth in July, the survey found.
The au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) slipped to 49.2 in July from 50.0 in June.
Service sector activity rebounded in July from the previous month with a solid gain in new business.
The au Jibun Bank flash Japan composite PMI, which combines both manufacturing and service sector activity, rose to 52.6 in July from 49.7 in June.

Japan's July factory activity slips, service sector solid, PMI shows By Reuters