Economy holds steady but spending loses steam

The government left its assessment of the economy unchanged in a monthly report released Tuesday but said personal spending has lost steam due to sluggish sales of winter clothes and rising vegetable prices.

"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 February, maintaining its economic assessment for the second straight month.

The January report said, "The economy is recovering at a moderate pace recently, although some weak movements are seen," alluding to slowing exports and industrial output.

The February report says private consumption "is almost flat." It attributes the weak consumption to slow clothing sales amid a relatively warm winter and higher vegetable prices in the aftermath of out-of-season storms in the fall.

The January report said consumption "is decelerating recently."

But the downbeat personal spending was offset by brisk corporate earnings and increasing capital spending, according to the latest report.