The government on Monday upgraded the economy for the first time in two months by deleting the word "weak" from its description to reflect the effect the "Abenomics"-weakened yen is having on exports and production.

The economy "is picking up slowly," the Cabinet Office said in its monthly economic report, which upgraded three of the 14 categories — exports, industrial output and corporate earnings.

In April, the government said the economy "is showing movements of picking up recently, while weakness can be seen in some areas," maintaining its basic economic assessment after raising it for three months.