U.S manufacturing activity was flat in June, the Federal Reserve said, although utility and mining output pushed overall industrial production up 0.2 percent from May.
The report was the latest suggesting growth in manufacturing, a bright spot in the economic recovery, is starting to slow. The total industrial operating rate was unchanged at 76.7 percent.
Motor vehicles and parts production fell 2 percent from May as the industry continues to be affected by supply chain interruptions following the Japanese tsunami and earthquake in March. Housing-related manufacturing also remains weak.
Core manufacturing, which excludes vehicles and high technology, slowed from a 5.2 percent annual growth rate in the first quarter to 1.4 percent in the second quarter. This category inched up 0.2 percent in May and June.
Utility output, which is affected by weather, increased 0.9 percent. Mining was up 0.5 percent.