A Japanese government survey shows that an improving service sector has pushed a business-sentiment gauge among major companies into positive territory.

The survey’s index for the April-to-June period came in at plus 2.7. It was the first positive reading in two quarters.

A number above zero means a majority of businesses think conditions have improved.

Sentiment among major non-manufacturing businesses jumped to plus 4.1, up 3.5 points from the previous quarter.

The service sector was boosted by stronger demand for dining out and an increase in spending by foreign tourists, as the impact of the coronavirus pandemic eased.

The government downgraded COVID-19 to the same category as seasonal flu about a month ago.

Yet the figure for manufacturers remained in negative territory at minus 0.4.

Semiconductor-related sales fell due to sluggish demand for smartphones in China and other countries. Overseas demand for home appliances has also declined.