BERLIN (AP) — German factory production slipped unexpectedly in July for the second month in a row but economists say there's no reason to panic yet about Europe's biggest economy.

The Economy Ministry reported Friday that industrial production dropped 1.1 percent in July over June, falling across all sectors except construction. That followed a 0.7 percent drop in June over May.

The ministry reported Thursday that factory orders had also dropped 0.9 percent in July, suggesting future declines in production as well.

Still, ING economist Carsten Brzeski said there was no need to panic, noting that the figures are traditionally volatile.

He says "July industrial data continues to disappoint but should only be one of those regular dips and not a start of a severe downswing."