BERLIN (AP) — Official data show German factory orders dropped for a second month in a row despite increasing domestic demand.

The Economy Ministry said Thursday that industrial orders dropped 0.9 percent in July over the previous month, following a 3.9 percent drop in June. Economists had predicted a 1.8 percent increase.

Domestic orders rose 2.4 percent in July over June, but foreign orders decreased 3.4 percent, including a 2.7 percent drop from within the 19-nation eurozone and a 4 percent drop from countries not using the euro currency.

Overall the German economy, Europe's biggest, is strong with low unemployment and high business confidence.