Uncertainties on South Korea's domestic demand linger amid the persistence of the fourth wave of the COVID-19 pandemic.

In its monthly economic report on Friday, the Finance Ministry said despite strong exports and improvements in the job market, uncertainties still remain amid the recent virus flare-up, centered around the in-person service sector.

Outside the country, the ministry said concerns exist over inflation and the spread of the delta variant, even amid an upward swing in the global economic recovery.

Domestic demand indicators for July were mixed, with credit card spending jumping seven-point-nine percent on-year, expanding for the sixth consecutive month. Sales at department stores also rose six-point-five percent.

Sales of automobiles, on the other hand, fell 14-point-nine percent on-year, declining for the fifth straight month.

The nation's July consumer sentiment index slipped for the first time this year to 103-point-two from 110-point-three in June. An above-100 figure indicates that consumers optimistic about the future economy outnumber pessimists.