Aug. 9 (Xinhua) -- South Korea's Finance Ministry on Tuesday expressed worry about the weakening of private consumption recovery amid lingering uncertainties at home and abroad.

The ministry said in its monthly economic assessment report or the Green Book that there is a possibility for domestic demand recovery to be limited due to downside risk factors at home and abroad such as Brexit， or British referendum to leave to the European Union， and the ongoing restructuring in troubled shipbuilders and shipping lines.

The end of a temporary cut in consumption tax for cars also contributed to pessimistic outlook for private consumption recovery， the report said.

It was in line with the state-run Korea Development Institute's (KDI) report saying that the South Korean economy would be hard to recovery in the near future due to the end of temporary tax cut and the restructuring process in the shipbuilding and shipping sectors.

Recent economic indicators improved， but it was mainly attributable to policy effects such as the Bank of Korea's (BOK) interest rate cut and the government's announcement for supplementary budget in the second half.

The BOK cut its benchmark interest rate by a quarter percentage point in June to an all-time low of 1.25 percent. The government submitted an extra budget plan to the National Assembly to stimulate the lackluster economy.

Retail sales rose 1.0 percent in June from a year earlier， faster than a 0.8-percent expansion in May. Services sector production gained 1.0 percent on the back of brisk car sales and rising transactions in stocks.

Facility investment advanced 4.5 percent in June， while construction completed increased 3.1 percent as the government front-loaded its fiscal spending.

However， production in the mining and manufacturing industries dipped 0.2 percent in June from a month ago due to slowing exports.

Overseas shipments in July tumbled 10.2 percent compared with a year earlier， keeping a downward momentum for 19 months in a row.

Auto sales slumped 10.5 percent in July on a yearly basis as the temporary tax cut for cars ended in June. It was in a stark contrast to car sales jumping 18.9 percent in March， 20.8 percent in May and 24.1 percent in June respectively.

Both revenue in department stores and credit card spending increased last month， but the growth rate slowed compared with the previous month.

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