Mubasher: German manufacturing orders unexpectedly fell in December 2018 for the second month in a row, adding to indicators of a more extended slowdown in Europe’s biggest economy.

Factory orders, a key indicator for German economy, dropped 1.6% month-on-month last December, the Federal Statistical Office (Destatis) said on Wednesday.

Meanwhile, economists polled by the Associated Press (AP) projected a 0.3% uptick.

Factory orders were dragged down by a 5.5% drop in demand last December from outside the Eurozone, while domestic orders fell by 2.3%.

Nevertheless, orders edged up by a slight 0.3% over the entire fourth quarter.

Growth was subdued in recent months, as auto manufacturers scrambled to get vehicles certified under new, tougher emission tests.

Moreover, new import tariffs levied by the US and China choked prospects for global trade, hurting the outlook for export-oriented Germany.

Last week, the government lowered its growth projection for this year to 1% from 1.8%.

By 10:26 am GMT, the EUR/USD pair fell 0.12% to $1.1392.