SEOUL (Reuters) - South Korea's economy is expected to see gradual improvement in coming months thanks to services and domestic consumption, the country's central bank said in a regular report on regional growth on Monday.

The overall pace of economic growth had slowed slightly in most regional economies over July and August, according to an assessment from the Bank of Korea's 16 regional offices nationwide.

Exports will remain sluggish but are expected to gradually recover, the report added.

Manufacturing is forecast to be largely steady in coming months compared to July and August, although semiconductor and smartphone production will rise in the area surrounding Seoul, Chungcheong Province and in Daegu.

Services will be propped up over the near term on more tourists visiting the country on top of plans for nationwide discount sales at retail stores in September and October, the central bank said, part of a government scheme to spur economic activity.

(Reporting by Christine Kim; Editing by Shri Navaratnam)