South Korean exports jump in August

South Korean exports rose at their fastest pace in nine months in August, welcome news for an economy where domestic demand is still struggling to recover from a protracted slump.
Separate data on Thursday revealed growing optimism among local companies, while consumer prices rose at their slowest pace in more than five years despite record-high oil prices.
Exports rose 18.8 percent in the year through August, the fastest rate of growth since November last year, commerce ministry data showed, although shipments to the United States fell for the fifth month in a row.
The export data, which topped expectations of a median 14.9 percent rise in a Reuters poll, came two days after data showing industrial output rose a seasonally adjusted 1.3 percent in July from June, confounding market expectations of a drop.
Private consumption, accounting for just over half of South Korea's gross domestic product, has been depressed since a credit bubble soured in 2002, even though the central bank has cut its key interest rate on four occasions, leaving it at a record low of 3.25 percent all this year.
Imports rose 20.5 percent in the year through August, the commerce ministry's provisional figures showed. It was the highest growth rate since a 28.9 percent rise in November last year, lifted by the higher cost of importing oil.
More detailed data covering just the first 20 days of August showed US-bound shipments fell 4.0 percent from a year earlier, raising concern that demand for imports may be suffering as US interest rates continue to rise and oil prices hit record highs.
Falling demand in the United States could also hurt China's sales abroad, which in turn would reduce Chinese manufacturers' demand for South Korean components.
South Korean consumer prices grew 2.0 percent in the year through August, the lowest inflation rate since the 1.1 percent logged in May 2000, as stable food prices offset high oil costs.
The inflation rate was below the median forecast of 2.3 percent in a Reuters poll of 10 economists.