The government will carefully examine the economic situation over the coming few months, while keeping its view that the economy remains on the recovery path, the report said.

The Nikkei last week reported that the government was considering a slight downgrade to its view of the economy as exports and production fell on slowing demand from China.

In February, the government said the economy was in a moderate recovery but a series of weak data on corporate sentiment, capital expenditure and exports shows the U.S.-China trade war is hurting the outlook for the world's third-largest economy.

Japan's exports and factory output have weakened as demand was hit by slowing global growth and the China-U.S. trade war.

The Bank of Japan last week kept its monetary policy unchanged but cut its view on overseas economies to say they are showing signs of slowdown. It also revised down its view on exports and output.

(Reporting by Kaori Kaneko; Editing by Sam Holmes)