(May 25): Japan’s government raised its monthly economic assessment in May for the first time in 10 months as consumption, production and exports improved.

The Cabinet Office said in its latest report Thursday that the economy is recovering at a moderate pace, saying the trend is expected to continue with the jobs and income situation improving. It also upgraded its assessment of consumer spending, production and exports.

The office also cited a slowdown in overseas economies as a downside risk for the Japanese economy. The global economy is already showing the impact from monetary policy tightening aimed at countering inflation around the world.

Earlier this month, data showed the Japanese economy expanded at a faster pace than expected in the first three months of the year. The improving economic conditions will keep speculation alive that Prime Minister Fumio Kishida may call an early election.