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Germany's manufacturing new orders declined in October, defying expectations for further increase, preliminary figures from the Federal Statistical Office showed on Thursday.

Factory orders fell a seasonally and calendar adjusted 0.4 percent month-on-month following a 1.5 percent increase in September, which was revised from the initially reported 1.3 percent gain. Economists had expected a 0.4 percent gain.

Domestic orders dropped 3.2 percent, while foreign demand grew 1.5 percent. Orders from the euro area surged 11.1 percent, while those from other countries fell 4.1 percent.

Intermediate goods manufacturers logged a 0.7 percent increase in orders, while producers of capital goods reported a 1.1 percent decline. Orders for consumer goods grew 0.3 percent.

Excluding major bookings, manufacturing orders decreased a seasonally and calendar adjusted 1.4 percent from the previous month.

On a year-on-year basis, factory orders dropped 5.5 percent in October after a 5 percent slump in the previous month. Economists were looking for a 4.7 percent decline.