Berlin - Germany factory orders plummeted by a hefty 6.9 per cent in December, the Economics and Technology Ministry said Thursday, as the global economic crisis tightened its grip on Europe's biggest economy. The seasonally adjusted fall in the nation's key industrial orders in December was far more than the 2.5 per cent that analysts had forecast and represented the 12th consecutive monthly fall in German order books.

The decline in December followed a revised 5.3 per cent drop in November.

Leading the fall in December factory orders was a 15.2-per-cent plunge in orders from Germany's partners in the 16-member eurozone during December.

Considered by analysts to be a key if volatile economic indicator, industrial orders from non-eurozone states dropped by 5.1 per cent in December, the ministry said.

While total foreign orders tumbled by 9.1 per cent, domestic orders in December slumped by 4.3 per cent during the month.

Underscoring the dramatic decline in the global economy during the run-up to the end of 2008, the ministry said that German orders were down 11.6 per cent in the fourth quarter compared to the three months to end of September.

The drop in factory orders is likely to set the stage for a further fall in German output with figures to be released Friday tipped to show industrial production in the nation falling by 2.5 per cent in December. (dpa)