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The services sector in Japan continued to expand in May, albeit at a slower pace, the latest survey from Nikkei revealed on Wednesday with a services PMI score of 51.7.

That's down marginally from 51.8 in April, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

Individually, there was an upturn in services activity amid resilient demand. Employment rose at a solid pace, while businesses maintained an optimistic outlook.

The survey also said that Nikkei's composite index eased to a reading of 50.7 in May, down from 50.8 in the previous month.