"The Japanese economy is on a moderate recovery" while "delayed improvement" is partly seen, said the report, which was compiled by the Cabinet Office and submitted to the day's meeting of relevant ministers by Economic and Fiscal Policy Minister Nobuteru Ishihara.

The government used this economic overview for the sixth straight month.

The government also left its assessments unchanged for all sectors. Private consumption "remains in pickup as a whole," and business investment is showing moves of "picking up," the report said. Exports and industrial production are also "picking up," it added.

A Cabinet Office official told a press briefing, "Consumer sentiment continues to recover," citing the improving employment situation and recent stability in stock prices.

"Exports continue improving," led mainly by shipments to other parts of Asia, the official said.

Still, the official said, "The pace of recovery in personal spending remains slow compared to that in employment and incomes."

Looking ahead, the report said the economy is "expected to recover," supported by the effects of policy measures, while the employment and income situation is improving.

But it warned, "Attention should be given to the uncertainty in overseas economies and the effects of fluctuations in the financial and capital markets." (Jiji Press)