South Korea's economic indicators were improved modestly amid lower inflationary pressure, but uncertainties surrounding the economy deepened further amid lingering crisis in Europe, the finance ministry said Thursday.

"Our economy saw economic indicators improved modestly as seen in employment that maintains its growth trend, and consumer price inflation continued to slow. But, economic uncertainties deepened somewhat as seen in the fall in both leading and coincident indices," the Ministry of Strategy and Finance said in a so- called Green Book, a monthly report assessing the nation's economic conditions.

The Asia's No.4 economy created more than 400,000 jobs in May, sending the jobless rate down to 3.1 percent in May from 3.5 percent a month before. The consumer price growth slowed to 2.2 percent in June from 2.5 percent in May, staying at the 2 percent range for four straight months.

Output in the mining and manufacturing sectors grew 1.1 percent on-month in May, and retail sales expanded 0.7 percent over the same period thanks to a rise in durable goods, especially automobiles. Exports recovered its growth trend for the first time in June, sending the trade surplus to 4.96 billion dollars.

However, the leading index of economic indicators, which gauges business activities around six months ahead, fell 0.4 point in May from a month before, and the coincident index, measuring current economic conditions, declined 0.5 point over the same period.

The ministry cautioned that there remained external uncertainties as concerns over slowdown in major economies continued amid lingering destabilizing factors from the Europe's fiscal crisis.

The ministry promised that it will strengthen its policy efforts to enhance the country's economic vigor and brace for the possibly prolonged crisis, while closely monitoring changes in economic conditions at home and abroad.