Staff members serve 'gyudon' beef bowls to customers inside Yoshinoya restaurant in Tokyo, Japan May 19, 2025. REUTERS/Issei Kato

TOKYO, Dec 3 (Reuters) - Japan's services sector activity continued its steady growth in November, driven by a faster rise in new orders and increased business confidence, a private-sector survey showed on Wednesday.

The S&P Global final Japan Services Purchasing Managers' Index (PMI) edged up to 53.2 in November from 53.1 in October, staying above the 50.0 line that separates growth from contraction for the eighth consecutive month.

Sub-indexes showed service activity growth was supported by robust domestic demand, with a faster increase in overall new work, despite a continued drop in export sales for the fifth month.

Employment in the service industry grew at its fastest rate since January, as firms showed the highest confidence in their future outlook since then.

Input prices rose at the sharpest pace in six months, although output price inflation eased from October. Higher costs for staff, energy and construction materials were primary contributors to rising expenses, according to the survey.

Japan's broader economic picture showed an improvement, as composite PMI output index rose to 52.0 in November from 51.5 in October, marking growth for the eighth straight month.

"Latest PMI data signalled a further modest expansion of private sector output in Japan, as a solid increase in service sector activity offset a slight reduction in factory output," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence.

"With a new economic stimulus package now approved by Japan's new government - which aims to boost economic growth and help ease the impact of rising costs - it will be important to see if this feeds through to further improvements in demand and output in the months ahead," Fiddes added.

Prime Minister Sanae Takaichi's government last week unveiled a hefty 21.3 trillion yen ($137 billion) stimulus package, after Japan's gross domestic product shrank in the July-September quarter.

($1 = 155.6300 yen)

(Reporting by Kantaro Komiya; Editing by Sam Holmes)