German exports fell at the fastest pace in more than a year in July as French industrial production shrank for a third straight month, fuelling fears of a wider eurozone slowdown.

Exports in Germany fell 2.6pc in July compared with June, according to Destatis. This was the biggest fall since August 2015, and compares with expectations for a 0.4pc rise.

The decline was driven by a drop in sales outside the EU, including China and the US, while demand from the UK also fell. June's month-on-month rise of 0.3pc was also revised down to 0.2pc.

Separate data showed French industrial production declined by 0.6pc in July on a monthly basis.

Analysts had expected French production to bounce back following declines in May and June when activity was hit by strike action.

Chantana Sam, an economist at HSBC, said: "This is a bad sign for the prospects of a rebound in business investment. Recent manufacturing surveys also point to a deteriorating outlook and persistent weak demand.

"All in all, this bad start to the third quarter of industrial production and puts some downside risks on our expectations for a rebound in GDP growth in the third quarter, after flat growth in the second quarter."