Euro zone industrial orders plunged by nearly a third year-on-year in May and fell from April despite expectations of a rebound, data showed, pointing to continued economic contraction.

Orders fell 0.2 per cent month-on-month for a 30.1 per cent annual drop, EU statistics office Eurostat said. Economists polled by Reuters had expected a 1.9 per cent monthly increase and a 28 per cent year-on-year fall.

The data showed the economy of the 16-nation euro zone remained deep in crisis in the second quarter.

Sentiment surveys have since shown improvement, suggesting the worst economic downturn since the second World War could be bottoming out