German industrial orders drop

Orders dropped by 2.9 percent on the month in June, following a 1.4 percent drop in May, the Economy Ministry said.

That dashed analysts' forecast of a 0.4 percent increase and marked an unprecedented seventh consecutive decrease, said Alexander Koch, an economist at UniCredit in Munich.

Orders from inside Germany decreased by 0.6 percent in June, but those from abroad dropped by 5.1 percent, according to government figures.

Orders from other countries in the 15-nation euro zone slumped by 7.7 percent.

Those from countries outside the euro zone--where German goods have, in many cases, been made more expensive by the euro's strength against the U.S. dollar--fell a more modest 3.1 percent.

The euro has surged against the dollar this year, reaching a record $1.6038 on July 15 before falling back. On Wednesday, a euro bought $1.5478.

Strong exports have been a key driver of Germany's economic upswing over recent years. However, the outlook for the economy has darkened amid recent declines in business, investor and consumer confidence.

The Finance Ministry has said the economy likely contracted in the second quarter. Quarterly growth figures are expected on Aug. 14.

Economic indicators also are pointing down elsewhere in the euro zone.