German industrial orders data on Tuesday underlined growing concerns that Europe's biggest economy is heading towards an economic slowdown, eking out a smaller-than-expected rise and showing a decline in domestic demand.

Contracts for goods "Made in Germany" were up by 0.2 per cent in July, the Economy Ministry said. That was weaker than a Reuters consensus forecast for a rise of 0.5 per cent.

Domestic demand fell by 3.0 per cent while foreign orders rose by 2.5 per cent, with demand from euro zone countries jumping by 5.9 per cent.

It was the first full month of industrial orders data since Britain's economically unsettling vote to leave the euro zone.

"Economic and political uncertainty are dampening order activity around the globe," VP Bank economist Thomas Gitzel said, adding that Britain's 23 June vote to leave the EU was only one negative factor among several others.

"With US presidential candidate Donald Trump, the next uncertainty is around the corner," Gitzel said, pointing to Trump's sharp rhetoric against free trade. The US is Germany's most important export market.

The data for June was revised up to a drop of 0.3 per cent from a previously reported fall of 0.4 per cent. In the less volatile two-month-comparison, orders were down by 0.2 per cent in June and July. – Reuters