"Domestic demand indicators exhibited steep fluctuations on temporary factors, while consumer sentiment trended up. But investment-related indicators showed slowing growth led by the value of construction completed," it added.

Retail sales and service production gained 4 percent and 2.5 percent on-year on average, respectively, in the September-October period, implying that a modest improvement trend was maintained despite the Chuseok holidays, the think tank said.

Facility investment swung to a decrease due to temporary factors, but semiconductor-related leading indicators maintained their upward movement, pointing to the possibility of modest growth in facilities investment, it noted.

Facility investment declined 3.4 percent in October from a year earlier, sharply down from the previous month's 24.9 percent expansion, due to temporary factors such as reduced workdays.

The country's November outbound shipments grew 9.6 percent, but exports of a few items, including semiconductors, maintained relatively strong growth, although the growth in total exports seems to have moderated slightly, according to the KDI. (Yonhap)