TOKYO (Reuters) - Japanese manufacturing activity expanded in June at a faster pace than initially reported, revised data showed on Tuesday, in a sign that domestic demand has quickly recovered from a sales tax increase at the start of April.
The final Markit/JMMA Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 51.5 in June, higher than a preliminary reading of 51.1 and more than 49.9 in May.
The index rose above the 50 threshold that separates expansion from contraction for the first time in three months.
Prime Minister Shinzo Abe's government raised the national sales tax to 8 percent from 5 percent on April 1 to pay for welfare spending.
The tax hike caused a dip in consumer spending and factory output, but the economy is showing signs that it will quickly bounce back.
(Reporting by Stanley White; Editing by Kim Coghill)