BERLIN, Oct. 7 (Xinhua) -- Germany's industrial orders fell for the fourth consecutive month in August, underscoring persistent weakness in the manufacturing sector as sluggish foreign demand offset a sharp rebound in domestic orders, official data showed on Tuesday.
Incoming orders declined by 0.8 percent month on month, the Federal Statistical Office (Destatis) reported. Domestic orders rose by 4.7 percent following a steep drop in July, while foreign demand continued to weaken, falling 4.1 percent in August.
The overall decline was driven largely by a 6.4 percent slump in orders from the automotive industry, according to Destatis.
Industrial demand in Germany has remained highly volatile this year, reflecting the challenges facing Europe's largest economy as it struggles to recover amid U.S. trade tariffs. Orders had shown signs of recovery earlier in the year, supported by front-loaded exports to the United States ahead of tariff hikes. However, momentum faded once the new duties took effect, and subsequent trade policies from Washington have added further pressure on German manufacturers.
Data from the Destatis showed that new orders from outside the euro area continued to drop sharply after rising until May, with a month-on-month decline of 5 percent in August.
Carsten Brzeski, global head of macro at ING Research, said the waning of front-loading effects had left German order books back at levels seen at the start of the year. "As today's industrial orders are tomorrow's production," he said, the figures suggest that "Germany's industrial slump is not about to end any time soon."
In a statement on Tuesday, the Federal Ministry for Economic Affairs and Energy said that while persistently weak foreign demand continues to weigh on the manufacturing sector, the renewed increase in domestic orders indicates that the downturn may be bottoming out - partly supported by rising demand from defense-related industries at home. ■