German industrial orders unexpectedly fell in August, marking a fourth straight month of decline, official data showed Tuesday, the latest blow to the government's efforts to reboot the ailing economy.

New orders, closely watched as an indicator of future business activity, dropped 0.8 percent month-on-month, according to preliminary figures from federal statistics agency Destatis, after sliding 2.7 percent in July.

Analysts surveyed by financial data firm FactSet had predicted an increase of one percent in August.

"The figures highlight the economy's bumpy road in all its ugliness," said LBBW bank analyst Jens-Oliver Niklasch. "After a slight upward trend in the spring, the downturn is now back."

Europe's biggest economy has faced two years of recession due to a manufacturing slump an

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