(BRUSSELS) - Factories in the 15 nations sharing the euro saw demand pull back more sharply than expected in May, official EU data showed on Wednesday.

New industrial orders in the eurozone slumped 3.5 percent in May from April and plunged 4.4 percent compared with the same month in 2007, the European Union's Eurostat data agency said.

The result fell far short of economists' forecasts for orders to fall 2.0 percent over one month and increase 1.7 percent from May 2007, as polled by Dow Jones Newswires.

The figures marked a sharp deterioration from April when new orders rose 2.0 percent over one month and surged 12.3 percent over one year, according to revised figures from Eurostat.

The weakness in May was driven by a sharp drop in orders for transport equipment, which often vary widely from month to month. However, orders for textiles and machinery were also soft.

Meanwhile, in the 27-nation EU new industrial orders fell 4.7 percent over one month in May and 2.8 percent over one year.

Further details - Eurostat

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