The government said Friday that the South Korean economy is gradually improving from a slump at the beginning of the year.

In an economic outlook report released Friday, the Ministry of Strategy and Finance made a more positive assessment of the local economy than it did last month, when the major economic activity gauges such as production, consumption and investment all headed south.

The ministry took note of a three-point-three-percent increase in mining and manufacturing output in February from January, the biggest increase since September 2009.

The increase in output was largely due to the growing demand for semiconductors following the releases of new mobile products by local handset makers, such as Samsung Electronics’ Galaxy S7 and LG Electronics’ G5 smartphones.

The ministry also positively viewed a slight ease in the country's exports decline. Exports in March fell by eight-point-two percent from the same month a year earlier, but its pace of decline slowed compared with an 18-point-five percent decrease in January and a 12-point-two percent drop in February.

The ministry, however, cautioned against excessive optimism, saying external risks remain challenging.