German industrial orders fell by more than expected in September as demand from the other 16 members of the group that uses the euro dropped, the Economy Ministry said Tuesday.
Industrial orders fell 3.3 percent in September over the previous month, pulled down by an overall 4.5 percent drop in foreign demand, including a 9.6 percent drop among the other eurozone countries. Domestic orders fell 1.8 percent.
Economists had been predicting a 0.4 percent drop in orders and the decline portends possible tough times ahead for Europe's largest economy.
"Weak economic environment within the eurozone, but also globally, is now having a more significant impact on demand for German products than in the first half of the year," the ministry said.
Germany has avoided recession during Europe's three-year debt crisis but, as other eurozone countries falter, its economy is beginning to slow. The government last month lowered its 2013 growth forecast to 1 percent from 1.6 percent. It expects 0.8 percent growth this year.
UniCredit economist Andreas Rees said despite the data the German economy has been doing "surprisingly well" compared to others in Europe, though the new figures suggest likely stagnation in the second half of the year.
"The decline in September was significant and wide-spread, thereby heralding a weak year-end for German companies," he said.
The ministry revised August's figure upward to a drop of 0.8 percent from the previously reported 1.3 percent decline.