German factory orders fell for a sixth month as inflation and uncertainty about energy supplies undermine Europe’s largest economy.

Demand slipped 1.1 per cent from June, driven by a slump in consumer goods, particularly pharmaceutical products. That’s worse than the 0.7 per cent drop economists had predicted.

Germany is struggling to avert a winter energy crisis after Russia cut supplies of natural gas. Even if it succeeds, the economy is still reeling from a sudden cost increase that’s weighing on industrial production and derailing the services sector’s rebound from pandemic restrictions.

“Enterprises still have difficulties completing their orders as supply chains are interrupted because of the war in Ukraine and distortions persist that have been caused by the Covid-19 crisis, the nation’s statistics office said Tuesday in a statement.

Chancellor Olaf Scholz’s government announced 65 billion euros of new measures to help households and businesses cope with the squeeze, though economists reckon that won’t be enough to stave off a recession.

An activity gauge by S&P Global last week showed factories slowing down in large parts of the euro area in the face of deteriorating purchasing power among consumers. — Bloomberg L.P.