German industry orders rose in May, due mainly to big-ticket domestic purchases, but foreign demand dropped in a fresh sign the pace of growth in Europe's largest economy is set to ease. Orders rose 1.8 percent on the month in May, the Economy Ministry said on Wednesday, confounding expectations for a 0.5 percent drop in a Reuters poll of 38 economists.
Analysts said a record order by German rail operator Deutsche Bahn for 300 high speed trains worth more than 7 billion euros had boosted the headline figure, masking a weakness in foreign orders which fell 5.8 percent in May. Germany's manufacturing sector expanded at its slowest rate in 17 months in June as new business growth eased, especially new export orders, a survey by research firm Markit showed last week. The latest trade data showed German exports falling at the fastest pace in more than two years in April. Domestic manufacturing orders surged 11.3 percent, with a 20 percent rise in capital goods, a 4.3 percent gain in intermediate goods and a 0.1 percent gain in consumer goods.