BERLIN -- German factory orders, an important indicator for Europe's biggest economy, dropped for the second consecutive month in August — led by lower demand from domestic customers.

The Economy Ministry said Monday that orders were 0.6% lower compared with the previous month. That followed a 2.1% decline in July.

There was a 2.6% drop in orders from inside Germany, while demand from foreign customers improved. Orders from other countries in the eurozone rose 1.5% and those from elsewhere were up 0.4%.

German industrial data have been largely disappointing for months. The economy contracted slightly in the second quarter and is widely believed to have shrunk further in the just-concluded third quarter, which would put it in a technical recession.