South Korea's economy was currently growing modestly due to brisk exports that offset slowing private consumption, a state-run economic institute said Thursday.

The Korea Development Institute (KDI) said in its monthly report that the economy kept a modest growth trend on robust exports though domestic demand gradually slowed down.

Exports, which account for about half of the economy, jumped 13.5 percent in May from a year earlier, after falling 1.5 percent in the previous month.

Global demand was strong for locally-made semiconductors, petrochemicals and oil products that logged a double-digit increase last month.

Consumer spending gradually slowed amid the still faltering labor market. The number of those employed grew by 123,000 in April from a year earlier, after rising by 113,000 in March.

Consumer price inflation fell to 1.5 percent in May from 1.6 percent in the prior month on soft inflationary pressure from the demand side.

Construction completed inched up 1.4 percent in April, but construction orders tumbled 42 percent in the month.