German industrial orders climbed fractionally in May after falling for three consecutive months as a result of the economic fallout from Russia's war in Ukraine, official data showed on Wednesday.

New orders – which usually provide a foretaste of industrial output – rose by 0.1 per cent in May from the previous month, the federal statistics agency Destatis calculated.

The previous month's reading was revised to show a drop of 1.8 per cent. 

On an annual basis, incoming orders in May were down 3.1 per cent from a year ago, when the coronavirus pandemic weighed more heavily on industry.

A breakdown of the data showed that orders for capital goods rose by 3.3 per cent month-on-month in May, while orders for intermediate goods and consumer goods fell by 3.2 per cent and 4.5 per cent respectively.

Foreign orders rose by 1.3 per cent, buoyed by a 3.7 per cent increase in orders from outside the eurozone.

Eurozone orders fell by 2.4 per cent and domestic German orders declined by 1.5 per cent.

Supply chain disruptions aggravated by the war in Ukraine and coronavirus lockdowns in key trading partner China have left manufacturers starved for components and put the brakes on production.

Supply chain disruptions aggravated by the war in Ukraine and coronavirus lockdowns in key trading partner China have left manufacturers starved for components and put the brakes on production

Over three-quarters of companies surveyed "complained of bottlenecks" and issues procuring raw materials, Destatis said.

Supply issues, the war in Ukraine and the imminent threat of a cut to Russian gas deliveries meant the outlook for the economy was weak amid high "uncertainty", the economy ministry said in a separate statement.