Seoul, Feb 9 || The South Korean economy is showing a moderate increase in production, thanks to improved consumption, a state-run think tank said on Monday.
"Recently, our economy has maintained moderate production growth, led by the service sector, thanks to improvements in consumption," the Korea Development Institute (KDI) said in its monthly economic assessment, reports news agency.
In December, industrial output rose 1.5 percent from the previous month, while retail sales increased 0.9 percent, rebounding from a decline in November.
Notably, service sector production grew 3.7 percent on gains in most areas, reflecting broad-based recovery, according to the report.
The KDI said consumption is gradually recovering from a slump, supported by rising incomes and cumulative interest rate cuts, while consumer sentiment remains strong.
In contrast, facility investment fell 3.6 percent, largely due to a 16.1 percent decline in transport equipment, including ships and aircraft.
Construction investment also continued to weaken, with output in the sector dropping sharply.