South Korea's state think tank has assessed the nation's exports are increasing steadily but domestic consumption remains sluggish.

The Korea Development Institute(KDI) said in its monthly economic assessment report on Wednesday that exports are growing on the back of brisk chip sales, but domestic consumption remains weak due to decreased investment and slow employment. 

According to the KDI, the country's overseas shipments decreased eight-point-two percent in September, compared to an eight-point-seven percent growth the previous month. However, it said exports are on a path of stable growth considering there were fewer working days last month due to the Chuseok holidays. 

The KDI said facility investment, which dropped over eleven percent in August, is likely to continue to decrease for the time being, especially in the area of machinery. 

The institute assessed that the labor market is experiencing a continued slump with slow job growth and an increasing jobless rate.