Euro zone orders rebound more than expected in June

BRUSSELS, Aug 24 - Euro zone industrial new orders rebounded more than expected in June against the previous month, adding to signs of economic recovery, but were still down by a quarter against last year's levels.

Orders rose 3.1 percent month-on-month for a 25.1 percent annual drop, European Union statistics office Eurostat said.

Economists polled by Reuters had expected a 1.5 pecent monthly rise and a 28.9 percent annual fall. The monthly rebound in June comes after two straight months of declines in orders, with Eurostat revising down May data to a 0.5 percent monthly fall from -0.2 percent and to a 30.3 percent annual drop from -30.1 percent.

The June rise was led by a surge in demand for capital goods, up 5.6 percent, and non-durable consumer goods, up 3.1 percent on the month. Demand for intermediate goods and durable consumer goods remained subdued, down 0.9 and 3.5 percent respectively.

Industrial new orders point to trends in economic activity as they will translate into production over the coming months.

Excluding orders for ships, planes and trains, which are volatile, orders were still up 1.9 percent on the month and down 26.7 percent year-on-year, a less pronounced fall than May's 30.3 percent or April's 35 percent.