New orders in Germany's industrial manufacturing sector have risen again after a protracted slump at the start of the year, a study published on Monday by the Ifo Institute for Economic Research (Ifo) finds.

According to the Munich-based institute, growing fears of weaker economic growth in Germany were overblown in light of a sustained international demand for the country's industrial exports.

"Since May, new orders in the industrial sector are increasing again." As a consequence, the "strong decline which was witnessed at the start of the year has been stopped", a statement by Ifo expert Timo Wollmershaeuser read.

The findings were based on a regular survey of 3,000 industrial manufacturing companies. The Ifo data provided on industrial exports is widely seen as an important early indicator for economic trends in the sector as captured by more comprehensive official statistics.

"A renewed rise in demand for German products suggests that the pace of industrial growth could pick up again in the second half of the year," Wollmershaeuser said.

Nevertheless, Ifo president Clemens Fuest has himself recently warned that the "momentum of the German economy is flagging" after the institute's Business Climate Index fell by 0.5 points to 101.8 points in June.

Ifo has recently lowered its GDP growth forecast for 2018 substantially from 2.6 percent to 1.8 percent. The Munich-based institute also revised its outlook for 2019 down from a GDP growth rate of 2.1 percent to 1.8 percent.

The more upbeat Ifo figures on Monday were published shortly after the closely-watched consumer sentiment barometer compiled by the GfK market research institute stabilized again in July after two consecutive months of decline.

The Nuremberg-based institute noted that trade conflicts between the European Union (EU) and U.S. were already weighing negatively on consumer sentiment as expectations for future economic growth fell.

However, the effect was offset by rising domestic wages and a related increase in the willingness of private households to commit to larger purchases.