The state-run Korea Development Institute(KDI) says conditions for domestic consumption are improving in some areas, despite continued sluggish growth in production.

​In a monthly assessment report published Thursday, the KDI said ​investment in the construction sector, one cause of the slow production growth, continues to experience a sharp decline, while the trend toward greater facility investment has begun to slow down.

In June, all industrial production rose zero-point-eight percent, with production in the construction industry dropping 12-point-three percent.

Although domestic spending remained weak, conditions in this area improved, with the consumer sentiment index for July reaching 110-point-eight, up from 108-point-seven the previous month.

The KDI predicted that the “consumption coupons” the government began issuing in July to stimulate the economy will contribute to a recovery in spending.