German industrial orders fall sharply

German industrial orders fell more than expected in February, official data showed Wednesday, as the economy ministry warned that  "high uncertainty" over the war in Ukraine was likely to dampen the outlook for manufacturers.

New orders dropped by 2.2 per cent over the previous month, statistics agency Destatis said, the first dip in the indicator in four months. Destatis said the decrease was mainly due to lower demand from abroad.

Factory orders are closely watched as a preview of future economic activity in Europe's manufacturing powerhouse.

February's dip gives a  "first taste of how the war in Ukraine and new uncertainties will affect the German economy", tweeted ING bank economist Carsten Brzeski.