Abstract: A rotary impact tool includes a motor housing, an electric motor supported in the motor housing, and a drive assembly for converting a continuous torque input from the motor to consecutive rotational impacts upon a workpiece. The drive assembly includes an anvil including an anvil lug and a hammer that is both rotationally and axially movable relative to the anvil. The hammer includes a hammer lug for imparting the consecutive rotational impacts upon the anvil lug. The rotary impact tool further comprises a printed circuit board assembly including a sensor that is configured to detect rotation of the anvil. The printed circuit board assembly is spaced from the anvil to define an axial gap therebetween.