U.S. industrial production rose in June as factories made more vehicles, machinery, and business equipment, the government reported Tuesday. The Federal Reserve (Fed) said output at U.S. factories, mines, and utilities rose 0.4 percent last month. Factory production rose 0.7 percent in June after falling by the same amount the previous month. Mining activity increased 0.7 percent last month, while utility output fell 1.9 percent. U.S. industry was operating at 78.9 percent of its total capacity in June, up slightly from the previous month, the Fed said. Factories are a crucial contributor to U.S. economic growth. Their strong results in June follow a period of uneven growth. Factory production fell in the two of the previous four months. In the second quarter, factory growth slowed to an annual rate of 1.4 percent, after jumping 9.8 percent in the first quarter. Factory output has increased 15.5 percent since its recession-era low, reached in June 2009. But it remains 2.9 percent below its pre-recession peak, hit in June 2007.
