DIW, one of Germany's five leading economic institutes, said it sees third-quarter GDP growth in Germany at about 0.3 percent, expanding only slightly faster than the expected 0.2 percent rate in the second quarter. "The strong growth at the beginning of this year is initially followed by a significantly slower pace of the overall economy," it said in a statement. Germany's economy in the first quarter expanded at a rate of 1.5 percent from the fourth quarter of last year. "In the face of weaker production and new order figures there are signs that German industry, excluding construction, will post its first decline in almost four years," DIW said. "But (the decline) is moderate at 0.3 percent, considering the strong expansion in the first half of the year." The German research institute also said the construction industry will likely stagnate in the third quarter, while retail, restaurants and transport will pick up speed and expand again.