The state-run Korea Development Institute says the economy is showing signs of a “slight” improvement, driven by a rebound in consumer spending.

In a monthly assessment report published Sunday, the KDI said that despite the contraction in construction investment and a slowdown in export growth, the economy appears to be improving slightly, led by consumption.

In September, industrial output jumped six-point-seven percent from a year earlier, while retail sales — a key indicator of consumption — increased two-point-two percent on-year, and facility investment rose 12-point-eight percent on-year.

But the KDI said the growth of exports is gradually slowing due to U.S. tariffs.

October’s exports showed a three-point-six percent rise, but the Chuseok holiday would have pushed that figure down. 

When adjusted for the effects of the holiday, average daily exports for September and October grew by three-point-two percent, as compared with August’s five-point-seven percent growth.