Berlin - German factory orders plunged by a dramatic 8 per cent in January, the nation's Economics and Technology Ministry said Wednesday, underscoring the stricken state of Europe's biggest economy at the start of the new year.

The seasonally adjusted fall in the nation's key industrial orders was far worse than the 2.2 per cent drop that analysts had forecast and followed the release of figures Tuesday showing a massive 20.7- per-cent year-on-year slump in German exports in January.

Releasing the data, the ministry also revised downward the December decline from an original estimate of 6.9 per cent to 7.6 per cent.

Leading the fall in January factory orders was a sharp 11.4-per- cent drop in foreign orders, with domestic orders contracting by 1.2 per cent during the month.

The drop in factory orders is likely to set the stage for a further steep fall in German output. Figures to be released Thursday are tipped to show industrial production in the nation slumping by 3 per cent in January after slumping by 4.6 per cent in December. (dpa)