WASHINGTON – Industrial production rose less than forecast in June, restrained by declines in the output of autos and business equipment.

The 0.2 percent increase in production at factories, mines and utilities followed a revised 0.1 percent decrease in May that was initially reported as a gain, figures from the Federal Reserve showed Friday. Economists projected a 0.3 percent rise in June, according to the median estimate in a Bloomberg News survey. Factory production was unchanged last month, while utility use rebounded.

Manufacturing, which accounts for about 12 percent of the economy, may be restrained by slower consumer demand and a buildup in inventories.

“We don’t see much upward traction,” said Sean Incremona, a senior economist at 4Cast Inc. in New York. “Because of the soft-demand outlook, there doesn’t seem to be much need to produce to restock inventories. We’re still working through the soft patch.”

Production of automobiles and parts fell 2 percent, the Fed report showed. Excluding autos, manufacturing rose 0.2 percent.

Business equipment production declined 0.7 percent in June. Output of computers and electronic products slumped 0.7 percent. Furniture production dropped 2.1 percent.

Capacity utilization, which measures the amount of a plant that is in use, held at 76.7 percent in June. The gauge compares with the average of 79.5 percent over the past 20 years.

 

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