German industrial production declined in June by slightly more than expected, led by a sharp drop in construction output. Total industrial output--which comprises output in manufacturing, energy and construction--fell 0.9% from May, according to the economics ministry on Tuesday. Economists polled by The Wall Street Journal expected a 0.4% decline. Compared with June last year, total production rose 2.5% when taking calendar effects into account. The upswing in German industry is likely to continue, albeit only at a "moderate pace," the ministry said. Output of capital goods--a gauge of investments--declined by 0.6% in June compared with May, while construction output fell 3.2%. The soft German production follows a set of weak manufacturing orders indicating that mounting trade tensions between the U.S. and the EU is already weighing on corporate investments. German manufacturing orders plunged 4.0% in June compared with May amid a 5.9% drop in demand from outside the eurozone, the economics ministry said on Monday.via