German industrial orders decline for second consecutive month in February

German industrial orders declined for the second month in a row in February due to lack of bulk orders and weak demands from abroad, official data showed on Wednesday, signaling that Europe's biggest economy still faced risks on its way to revival.

New orders, adjusted for seasonal and inflation swings, declined by 0.9 percent month-on-month in February, following a decrease of 2.6 percent in January, data from German federal statistical office Destatis showed.

While domestic orders stagnated, foreign orders fell by 1.6 percent. Demands from the euro zone remained weak as new orders from the common currency area dropped by 2.1 percent on the previous month.

Destatis attributed the drop to a lack of new orders for intermediate and capital goods which decreased by 1.2 percent and 1.1 percent respectively. In contrast, orders for consumer goods increased by 2.9 percent thanks to robust morale of consumers.

"After a strong performance in the second half of 2014, new orders in manufacturing had a very modest start in the new year," said German Federal Economy Ministry in a statement, adding that "orders in the first two months was significantly weaker".

However, the ministry said the overall trend of industrial activity in Germany "remain moderately upward", citing recent strong indicators.

A survey of purchasing managers last week showed that German manufacturing grew last month at the fastest pace since April 2014. Unemployment in Germany also hit its lowest level since the country's reunification 25 years ago.

"The sentiment indicators continue to send positive signals," the Economy Ministry said. Endit