The Japanese cabinet office said on Friday the economy is showing signs of growth momentum and that the exports sector has been helped by China's growth and strong recovery in the U.S.

Exports are decreasing modestly, and industrial production shows signs that it has begun to stop decreasing, the cabinet office's monthly economic report said. Japan last presented an upbeat view on industrial production in June last year.

At a separate event, Japanese Economics Minister Kaoru Yosano said there were bright signs for the economy, particularly in the automobile sector, Reuters reported.

Official reports from China showed yesterday the economy recorded a 10.3 percent growth in 2010, coming back strongly from the global crisis.