South Korea's economy remains bogged down despite some signs of improvement in industrial output and private consumption, a state-run think tank said Thursday.
  

The Korea Development Institute said the latest indicators gave off mixed signals with exports, factory operational rates and the construction sector backtracking.
  

Such developments occurred as industrial production and shipments increased along with private consumption in durable goods, and recent data also showed modest gains in facility investments, the institute said.
  

On inflation, a drop in international crude oil prices caused numbers to rise by less than 1 percent, despite the sharp spike in cigarette prices.
  

The KDI said industrial output and shipments rebounded in December, with service sector figures continuing to advance.
  

Industrial output was up 1.8 percent in December, with services adding 3 percent.
  

It said while the average operating rate of factories remained disappointing, it did edge up to 76.2 percent from 74.2 percent.
  

Inventory in the industrial sector fell 2.8 percent on-year in the last month of 2014, but those for electronics, computers and audio video equipment rose.
  

The latest monthly report said exports, a key engine of growth, fell into minus territory.
 

Exports contracted 0.4 percent on-year in January mainly due to a drop in shipments of petroleum-related products. This is down from 3.6 percent growth tallied for the previous month.  
  

On consumption, a critical economic barometer, numbers advanced a healthy 4.5 percent on-year in December, thanks mainly to a surge in sales of automobiles.
  

"Although there was a rise, gains remained tenuous with demand for quasi-durable and non-durable goods not rising at a pace that indicates market confidence," the KDI said.
  

On the plus side, the consumer sentiment index rose 1 point to 102 for January, a sign that recent contractions may have been arrested.
  

In regards to facility investment, the think tank said the related index has moved upwards for two straight months.
  

"Despite such gains, overall business sentiment has stalled, implying that uncertainties about the future run high," the report said.
  

In the area of construction, the KDI said actual work numbers continued to decrease in December, a clear sign of the industry's weakness. On the other hand, it cited recent improvements in housing construction-related index numbers, which can be interpreted as a moderation in the construction investment slump.
  

Overall, the state-run agency said economic indicators are showing signs of moderation and stability vis-a-vis negative growth trends shown in the past, yet overall economic conditions remained weak. (Yonhap)