TOKYO (Kyodo) -- The government on Wednesday maintained its view in a monthly report that Japan's economy is recovering moderately but warned lackluster consumer spending stemming from prolonged price hikes poses a downside risk.

The economic report for March also voiced anxiety that U.S. trade policies may hurt the economy, as U.S. President Donald Trump has pledged to impose tariffs on many products, including autos, dealing a heavy blow to Japanese exports -- a key driver of growth.

Japan's Cabinet Office, which is in charge of economic and fiscal policy, said the economy is "recovering at a moderate pace," although it remains in part on pause, using the same expression for its overall assessment for the eighth straight month.

The evaluation on corporate profits, meanwhile, was upgraded, with the office saying they are "improving." The view on consumption, accounting for more than half of Japan's economy, was left unchanged, as the report said it is picking up but still partially stalled.

Looking ahead, the report expressed vigilance over the future course of private spending as consumer prices continue increasing, due in part to the yen's depreciation, likely prompting households to tighten their purse strings.

A government official briefing reporters said, "With food and other daily necessities becoming more expensive, anticipated inflation rates have been climbing among households, putting pressure on consumer sentiment."

The report also pointed out that Trump's eagerness to levy massive tariffs on imports from other countries is expected to undermine the global economy, particularly affecting China, Japan's biggest trading partner, and Europe.