Tokyo, Aug 11 (Xinhua) The Japanese government Tuesday said in its assessment of the nation's economy that there were signs of recovery as exports, production and consumption have showed improvements.

'The economy has been showing movements of picking up recently while in a difficult situation,' said the cabinet office in a monthly report.

The office also called for caution over rising unemployment rates, warning that the level of economic activity in the country was still low amid the global recession.

Japan's exports and industrial output 'are picking up' while private consumption has been showing 'movements of picking up recently', said the report.

It added that the economic conditions were 'likely to remain severe for the time being' although further recovery was expected due to progress in inventory cuts by manufacturers, effects of the government's stimulus policies and recovery in other major economies.