BERLIN, Aug 4 (Reuters) - German industrial orders rose twice as much as expected in June as domestic demand surged, data showed on Friday, suggesting this sector of Europe's largest economy is likely to gain traction in the coming months.
Factories posted a 1.0 percent increase in contracts in June after bookings for 'Made in Germany' goods rose by an upwardly revised 1.1 percent in May, data from the Economy Ministry showed.
The reading for June beat the Reuters forecast for a 0.5-percent rise.
The Economy Ministry said order levels, combined with an excellent business climate, pointed to a continued slight upturn in industrial activity.
A breakdown of the June data showed domestic demand increased by 5.1 percent while foreign orders dropped by 2.0 percent. (Reporting by Michelle Martin; Editing by Joseph Nasr)