German factory orders dropped a larger than expected 1.4 percent in July compared to the previous month, dragged down by flagging foreign demand.
The Federal Statistical Office reported Friday that it revised June's 2 percent increase downward to a rise of 1.8 percent, adjusted for seasonal and calendar factors.
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In July, domestic orders increased by 4.1 percent but foreign orders decreased 5.2 percent. New orders from the euro currency area were up 2.2 percent, but new orders from other countries dropped 9.5 percent.
UniCredit economist Andreas Rees says the July drop, greater than the 0.6 percent drop predicted by analysts, seems more of a "technical breather after a strong rally" than a matter for concern.
Rees says the strong rises in both eurozone and domestic demand are "outright positive details."