The economy is showing signs of improvement, driven by consumption, for the second consecutive month.

In its Monthly Economic Trends report released Monday, the Korea Development Institute(KDI) detected continued signs of gradual economic recovery, led by consumption, despite contraction in the construction industry.

The KDI used the word "improvement" to refer to the economy for the second straight month.

Earlier in May, the institute used the term “economic slowdown” for the first time in roughly two years, then described the economy as facing “downside risks” or “downward pressure” in monthly assessments through October.

In October, industrial output declined by three-point-six percent from a year earlier. It had grown by one-point-six percent between September and October.

Retail sales, a key indicator of consumption, increased just point-three percent year-over-year but posted an average growth of one-point-three percent between September and October. 

The institute said the growth drove a gradual increase in overall industrial output. 

Exports in November expanded eight-point-four percent on the back of robust exports of semiconductors after climbing just three-and-a-half percent in October.