The Korea Development Institute says South Korea’s economy remains on a gradual growth track on the back of robust exports. However, it says growth in domestic consumption is slowing down and production is seeing limited improvement.  
 
The state-run think tank released its report on economic trends for June Wednesday. 
 
The institute said that the Index of All Industry Production rose two percent in April after posting negative growth of six-tenth of a percent a month earlier. It attributed such growth to the increased output of the mining and manufacturing industries but was quick to add that improvement in production is limited overall. 
 
The agency said that consumption remains in good shape, noting a five-point-two percent jump in an index gauging sales at retailers, which was boosted by the brisk sale of durable goods. 

But the institute added that consumption in the service sector has not yet improved.