German growth slows more than expected (by Simon Kennedy)

LONDON (MarketWatch) -- The German economy grew 0.1% during the second quarter after adjusting for seasonal effects, according to data from the nation's federal statistics office. Compared with the second quarter of last year, gross domestic product rose 2.7% after adjusting for price and calendar effects. Growth during the quarter slowed sharply from the 1.3% reported for the first quarter and was also below the 0.4% rate forecast by economists polled by Dow Jones Newswires. Economists had been expecting an annual growth rate of 3.1%.

Euro-zone growth slows to 0.2% in second quarter (by Polya Lesova)

LONDON (MarketWatch) -- The euro zone's gross domestic product grew 0.2% in the second quarter compared with the preceding three months, Eurostat said Tuesday. The figures were below expectations for 0.3% growth quarter-on-quarter and mark a slowdown from the 0.8% rise seen in the first quarter. Compared to the second quarter of 2010, euro-zone GDP rose 1.7% in the April-June quarter.

U.K. inflation accelerates to 4.4% (by Simon Kennedy)

LONDON (MarketWatch) -- U.K. consumer price inflation accelerated to an annual rate of 4.4% in July from 4.2% in June, according to data released Tuesday by the Office for National Statistics. The increase was due to upward pressure from a number of areas, including higher housing rent and rising fees in financial services. Economists had, on average, been expecting inflation to reach a 4.3% annual rate. The inflation rate continues to run well above the Bank of England's target rate of 2%. The British pound showed little reaction to the data and was last down 0.2% to $1.6345.

Housing starts slip 1.5% in July ( ITB ) (by Steve Goldstein)

WASHINGTON (MarketWatch) - Housing starts slipped 1.5% in July, according to data released Tuesday that demonstrate the negative impact on demand for new houses that comes from cheaper foreclosed homes, underwater mortgages, tight lending standards and high unemployment. The Commerce Department said starts fell to a seasonally adjusted annual rate of 604,000 from a downwardly revised 613,000 rate in June. Economists polled by MarketWatch had anticipated a 600,000 annualized rate for July, and many had thought June's initial reading of 629,000 was too strong. Single-family starts slipped 4.9% to 425,000 from a downwardly revised 447,000. Building permits, a less volatile statistic, fell 3.2% to an annual rate of 597,000 in July, and June's data also was downwardly revised, to 617,000 from 624,000. Demand for apartments stayed strong, with starts for structures with five or more units up 6.3%.

July import prices rise 0.3% on higher oil prices (by Greg Robb)

WASHINGTON (MarketWatch) - Higher crude oil prices drove import prices up by 0.3% in July, the Labor Department reported Tuesday. The rise in import prices was a surprise. Economists surveyed by MarketWatch were expecting import prices to fall 0.1% in July. Import prices had fallen 0.6% in June, the first decline in a year. Imported fuel prices rose 0.4% in July after a 2.1% decline in June. The price index for imports excluding fuel rose 0.2% in July following a 0.1% drop in June. The data show that the recent commodity-led surge in import prices is losing steam. Over the past three months, import prices edged down 0.1% after increasing 13.7% in the seven months prior to May. Prices of exports from the United States fell 0.4% in July. This was the first decline in a year.

July industrial output up 0.9%, biggest '11 gain (by Greg Robb)

WASHINGTON (MarketWatch) - The output of the nation's factories, mines and utilities surged 0.9% in July as auto assemblies rebounded and the output of utilities jumped because of hot weather, the Federal Reserve said Tuesday. The gain, the biggest since last December, was in line with expectations. There were broad-based gains in July as production increased for all major market groups. Factory activity alone rose 0.6% in July. Total motor vehicle assemblies rose to 8.7 million unit annual rate in July from a 7.9 million rate in June. Excluding motor vehicles and parts, factory production rose 0.7% in July. Capacity utilization - a gauge of slack in the economy - rose to 77.5% in July from 76.9% in June. This is the highest level of capacity utilization since August 2008.