South Korea exports seen slowing for 3rd month in August

South Korea's August exports will probably show a third straight month of slower annual growth, underscoring a risk of cooling shipments coinciding with sluggish domestic demand, a Reuters poll showed on Monday.
The estimate came a week after government data showed export-led factory production recorded a surprise drop in July for the second month in a row, reinforcing a recent trend of flattening growth after sharp gains for about half a year.
A median estimate from 10 economists showed exports in August would be 32.5 percent more than a year earlier on a customs clearance basis, slowing from a revised 36.3 percent and 38.1 percent gains for July and June respectively.
The commerce ministry is due to release provisional export and import numbers for August at 11:00 am (0200 GMT) on Wednesday. South Korea does not announce seasonally adjusted data on monthly exports and imports.
"Information technology products will probably continue to see slower growth in exports in August and the focus now is how rapidly the slowdown will unfold," said Lee Sang-jae, an economist at Hyundai Securities.
Computer chips, mobile handsets and computers, which account for more than a quarter of South Korea's total exports, already saw growth in sales abroad slowing in the year through July, as they had a month earlier.
Imports were forecast to be 35 percent higher in August than a year earlier, compared with a 23.2 percent gain in the year through July. The month's trade surplus was estimated at $2.09 billion, slightly up from the $1.83 billion surplus a year ago.
Economists said the faster import growth in August would mostly be due to higher global prices of oil and other raw materials.
South Korea expects robust exports driven by shipments to China, which accounts for about one-fifth of the total, to help lift economic growth to more than 5 percent this year from 3.1 percent last year.
But a further delay in a recovery in domestic consumption could threaten growth next year, when exports will continue to slow not only toward China but to other major markets, economists say.
Exports to China rose 51 percent in the year through July, down from 58 percent for June and 74 percent for May.