Japan's private sector continued to contract in September but at a slower pace, flash survey results from IHS Markit showed on Friday.
The au Jibun Bank composite output index rose to 47.7 in September from 45.5 in the previous month. A score below 50.0 indicates contraction.
The service sector shrank at a slower pace, while growth in manufacturing eased in September.
The services Purchasing Managers' Index advanced to 47.4 from 42.9 a month ago.
The manufacturing PMI declined to 51.2 from 52.7 in August. Both output and new orders fell into negative territory.