Orders from other eurozone members increased just 1. 7 per cent, an indication that "downside risks for the German economy do currently not mainly come from geopolitical tensions but rather from longer-than-expected weak demand from eurozone peers," said ING economist Carsten Brzeski.
But the decline in domestic orders for both intermediate and consumer goods, two less volatile categories, and a foreign order decline in consumer goods are signs of still "underlying weakness," said Berenberg economist Christian Schulz.
Orders in capital goods, generally a volatile category, grew 8. 5 per cent on the month, with a particularly strong figure coming from orders from outside of the euro zone, which grew by 14. 6 per cent.
Order books in the German manufacturing sector filled up at a very strong pace in July, a report showed on Thursday, breaking a string of downbeat economic data from Europe's largest economy.
Read more here: Business Spectator