BERLIN, Jan 6 Reuters German industrial orders saw their sharpest drop in more than a year in November on falling foreign demand, decreasing by 5.3 on the month on a seasonally and calendar adjusted basis, the federal statistics office said on Friday.

A Reuters poll of analysts had pointed to a 0.5 fall, after a downwardly revised rise of 0.6 in October.

Orders from eurozone countries slumped by 10.3 on the month, while those from outside the eurozone fell by 6.8.

This shows how strongly the high energy prices are weighing on the eurozone, said VP Bank chief economist Thomas Gitzel.

The development shows that industry is going through a difficult winter, even though companies39; business expectations have improved recently, said the economy ministry.

A survey by the Ifo economic institute found that 50.7 of companies in the manufacturing sectors reported problems with material shortages in December, down from 59.3 the month before.

The statistics office publishes a statement with more economic data.

Reporting by Miranda Murray, Rene Wagner and Kirsti Knolle Editing by Paul Carrel

Source Reuters