Production at U.S. factories declined in June for a second month, restrained by higher inventories and a softer economic outlook.
The 0.5% decrease in manufacturing output matched the downwardly revised drop in May, Federal Reserve data showed July 15. Total industrial production, which also includes mining and utility output, fell 0.2% last month, the first decline this year.
A second month of sluggish factory output underscores the impact of a buildup in inventories at the same time higher inflation risk cooling sales and household spending gravitates toward services. A slowdown in orders growth was evident in the latest manufacturing surveys.
