TOKYO, Feb 21 Reuters Japan kept its assessment of the economy unchanged in February as consumer spending remained on a recovery trend despite soft exports and factory output due to the global economic slowdown.

The government also retained its caution over the impact of global monetary tightening, price hikes and supply constraint in its monthly report. It will continue to closely monitor financial market fluctuations and China39;s COVID19 situation, the report said.

The new economic assessment comes after data last week showed Japan39;s economy averted recession but rebounded much less than expected in the fourth quarter last year as business investment slumped.

The economy is picking up moderately, although some weakness is seen recently, the Cabinet Office said in its monthly economic assessment, which was unchanged from January.

Consumer spending, which accounts for more than half of Japan39;s gross domestic product GDP, was recovering moderately as people spent on eating at restaurants and travelling as well as purchasing autos, according to the report.

The government39;s campaign to subsidise domestic travel and the easing of border control steps boosted tourism, the report said.

The Cabinet Office described exports as weakening recently, unchanged from the January report. Japan39;s shipments to Asia weakened due to impacts from China39;s coronavirus wave and softer demand for the semiconductor market. These also impacted manufacturers39; production…