Industrial production in Germany slipped in July, official data showed on Friday, following up a weak new orders figure the day before, reports AFP from Frankfurt.

Output fell 1.1 per cent month-on-month, federal statistics authority Destatis said in figures adjusted for price, seasonal and calendar effects.

That disappointed forecasts from analysts surveyed by Factset, who had reckoned with a 0.2 per cent increase.

Production was lower across manufacturing firms, with capital goods makers shedding 2.5 per cent, producer goods makers 1.4 per cent and consumer goods 0.9 per cent.

Construction output was the only sector to report an increase, while energy firms generated the same amount as last month.

Economic growth in Germany has slowed from the high pace seen in late 2017, as trade war fears have weighed on confidence in the export-reliant country.

Think-tank DIW predicted Thursday annual growth of 1.8 per cent, saying "the German economy is pressing slightly on the brake pedal" following last year's 2.2-per cent expansion.

In a separate release, Destatis said Germany's trade balance -- total exports minus total imports -- stood at 16.5 billion euros ($19.2 billion), down from 18.8 billion one year ago.