Berlin, Oct. 5 (Bloomberg) -- German manufacturing orders rose for the first time in three months in August, amid stronger demand at home. Economists and executives say orders are likely to fall again after the attacks on the U.S. Factory orders rose 1.4 percent in August after declining 1.5 percent in July, the Finance Ministry reported. Analysts had expected an increase of 0.2 percent. The rise was led by a 6.7 percent increase in orders from German companies for such goods as factory machinery and office equipment. German executives had grown more optimistic in August about future business, suggesting they were inclined to step up investment in the months ahead. Those plans may now be shelved -- companies from DaimlerChrysler AG to BASF AG said last week they may miss their earnings targets amid weaker demand. ``Orders have declined 10 percent after the attacks, mostly in the U.S.,'' said Juergen Geissinger, chief executive of INA Holding Schaeffler KG, a family-owned car parts maker who wants to buy rival FAG Kugelfischer Georg Schaefer AG. Volkswagen AG, Europe's biggest carmaker, said it would pare production as sales slowed after the Sept. 11 attacks. ThyssenKrupp AG, Germany's No. 1 steelmaker, and Heidelberger Druckmaschinen AG, the world's largest printing machine maker, also said they expect demand to weaken. The European Central Bank pared its benchmark lending rate 50 basis points to 3.75 percent on Sept. 17, following a half- point reduction by the U.S. Federal Reserve that day and amid concern the attacks may hurt the economies of the dozen countries that share the euro.