TOKYO, Nov. 11 (Xinhua) -- Sentiment in Japan's service sector fell to its lowest level in eight years in October due to sales slumping after a consumption tax hike from the beginning of the month from 8 to 10 percent, the government said in a report on Monday.

(File photo: VCG)

The monthly Economy Watchers survey's diffusion index, in which a score of more than 50 means people view current economic conditions in a positive light, tumbled 10.0 points from September to 36.7, the Cabinet Office said.

The reading marks the lowest level since May 2011 when demand remained downbeat after a huge earthquake and tsunami battered Japan's eastern seaboard with the latter causing a nuclear crisis at the Fukushima facility in northeastern Japan.

The decline itself marks the steepest since April 2014 when the index dropped 15.7 points on a seasonally adjusted basis after the consumption tax here was hiked from 5 to 8 percent.

The office also said that sentiment was dampened by a series of typhoons lashing Japan, including Typhoon Hagibis, the most powerful typhoon to hit Japan in decades.

Based on the latest survey, however, the Cabinet Office maintained its assessment of sentiment, stating "The economy has shown weak movement in its recovery."

The Cabinet Office also said Monday, however, that conditions in the service sector were set to improve in the coming months, with the sentiment index for coming economic conditions gaining 6.8 points to 43.7, as many of those responding to the survey believed that the negative impact of the latest tax hike and the affects of the typhoons would not be long lasting.

The Economy Watchers Survey asks business-cycle sensitive workers their thoughts on existing and future economic conditions to provide the government with a detailed picture of economic trends in Japan.

Segments of the economy surveyed include sectors such as retail, restaurant service, and taxi driving, and the monthly report serves as both a consumer confidence indicator and a leading indicator for the rest of the economy.

The survey released Monday showed that as well as sentiment just declining in the recording month, it also retreated further past the boom-or-bust 50 line meaning that, overall, more people polled felt conditions had worsened in comparison to the previous three months.

The survey was conducted between Oct. 25 to 31, and polled 2,050 workers across Japan.