Headline factory orders in Germany rose 4.6% in July, exceeding consensus forecasts for 1.5% growth, rebounding strongly after falls the month before.
This was the largest monthly increase sine June 2013.
Figures for June were revised from -3.2% to -2.7%, the Economy Ministry in Berlin said.
Analysts at Barclays explained that these marked movements over recent months were attributable to the swing in figures related to the volatile large transportation equipment industries.
Foreign core orders from countries outside the Eurozone rose 3% month-on-month and are now 3.6% above their second-quarter average, while the level of domestic core orders rose 1.1% month-on-month but remained below its second-quarter average.
Barclays said the figures for foreign core orders "reflect, with a slight lag, the strong second-quarter economic rebound in the US and better demand from Asia".
Orders for consumer goods declined by 2.9%, while intermediate goods orders rose 0.3% and capital goods orders registered an 8.5% increase.
On a less positive note, activity in Germany's construction sector fell for the fifth consecutive month in August, according to Markit, as new order continued to decline.
More jobs were cut as businesses remained cautious about their employment numbers, while purchase prices rose at the slowest rate in almost five years.
The seasonally adjusted purchasing managers' index (PMI) fell from 48.2 in July to 47.7, well below the neutral 50.0 mark, highlighting the continued contraction in Germany's construction sector.
Markit said the drop in construction activity was largely driven by declines in commercial and civil engineering output, as work on commercial building projects also returned to contraction, after a slight rise in July.
Civil engineering projects fell at a fast rate, while work on residential building sites was the only sector to register growth out of the three main categories of construction activity, though the growth was slower than in July.
A decline in activity and new work saw companies curb their purchasing activity - August saw the biggest drop in buying input for almost 18 months - as well as their staffing levels.
"August data signalled a further drop in German construction output, extending the current sequence of contraction to five months," said Markit economist Oliver Kolodseike.
"As a result, companies reduced their workforce numbers and purchasing activity further, in part also reflecting uncertainty about future workloads. The only positive from otherwise disappointing data is a marginal expansion in work on residential building projects."
In other news, Markit's retail PMI for August showed that retail sales declined for the first time in 16 months. The PMI fell to 49.4 from 52.1 in July.