PARIS — The Italian economy shrank again in the second quarter, official data showed Tuesday, and orders for German machinery declined sharply, a reminder that flagging growth continued to complicate European leaders’ quest to restore confidence in the euro zone.

Italy’s gross domestic product declined 0.7 percent in the April-June period, compared with the first three months of the year, according to the country’s official statistical agency, Istat. The economy shrank 2.5 percent in the second quarter a year earlier.

The Italian economy has now contracted for four consecutive quarters, leaving it deep in recession. And with the entire euro area economy on shaky ground, analysts are pessimistic about the prospects for a near-term revival.

While Istat’s initial estimate did not break down the worst-hit areas of the Italian economy, Ben May, an economist in London with Capital Economics, said recent data suggested that declining domestic activity was the main problem. Falling retail sales, record low consumer sentiment and weak bank lending are all weighing on growth, he said in a research note.