The government on Thursday left its overall assessment of the economy unchanged for a fifth straight month, stating that a slight improvement in exports was offset by weaker housing construction.

"The economy is recovering at a moderate pace, while some weak movements continue to be seen," the Cabinet Office said in its monthly economic report for May, mirroring the wording used in the previous month's report.

The report states, however, that exports are "flat," as opposed to "weakening," as was stated in the April report. A Cabinet Office official said demand for Japanese-made automobiles was firm in the United States.

The report features the first indication of an improving exports picture since March 2004.

"Exports to the United States are moderately increasing, while exports to Asia, including China, as well as European nations continue to weaken," an official at the Cabinet Office said.

The government left unchanged its assessment that imports are flat.

Turning to housing construction, the government lowered its assessment from "increasing" to "leveling off."

The government's assessment remains unchanged from April with regard to other components of economic activity.

Industrial production is "leveling off," while personal spending is "showing movements of a pickup," it says.

"Corporate profits are improving and business investment is increasing moderately," it says.

Looking ahead, the report asserts that the economic recovery is expected to remain solid, in step with a steady recovery of the global economy, and that the corporate sector remains resilient.

But inventory adjustment within the information technology sector and crude oil prices should be closely monitored, the report says.