German industrial orders fell unexpectedly in April, marking the fourth consecutive month of decreases, due to a significantly smaller number of large-scale orders compared with the previous month, according to federal statistics office data on Thursday.

New orders, closely watched as an indicator of future business activity, slipped 0.2% month-on-month, according to provisional data from the federal statistics agency Destatis, suggesting Europe's beleaguered top economy struggles to get back on its feet.

"The negative trend that has persisted since the beginning of the year is thus continuing, albeit at a much slower pace," the Economy Ministry said.

Analysts surveyed by financial data firm FactSet had expected an increase of 0.5%.

While the figure was only a "mini-decline," it "nevertheless shows how difficult the economy is currently finding it to regain its footing," said LBBW bank economist Jens-Oliver Niklasch.

There was a "lack of growth impetus," he said, adding that a boost would need to come in the form of improved exports.

The German economy, traditionally a growth engine for the wider eurozone, has been struggling since Russia's 2022 invasion of Ukraine sent energy costs soaring.

The key manufacturing sector was hit particularly hard, and the economy shrank slightly in 2023.

In April, there were declines in orders in areas including transport equipment and the manufacture of machinery, while there were increases in the auto sector, Destatis said.

Foreign orders fell by 0.1%, dragged down by a weak eurozone performance, while domestic orders were down 0.3%, it said.

Despite the gloomy picture, the economy is expected to start recovering in 2024, albeit weakly, and some indicators have been improving in recent months.

In April the German government nudged up its 2024 growth forecast to 0.3%, from 0.2% previously – although this lags expectations for the broader eurozone.