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July 18, 2012

Industrial production rose in June

WASHINGTON (UPI) -- Industrial production rose 0.4 percent in June after slipping 0.2 percent in May, the U.S. Federal Reserve said Tuesday.

Output in manufacturing, one of three industrial divisions, rose at an annual rate of 1.4 percent, "a marked deceleration from its strong gain of 9.8 percent in the first quarter," the Fed said.

In the second quarter, April through June, motor vehicle production climbed 18.2 percent, making it the largest contributor to the gains in manufacturing.

Production at mines fell at an annual rate of 1.2 percent in the quarter, while output at the nation's utility companies rose 14.9 percent due to warm temperatures and high demand for air conditioning.

Capacity utilization -- measuring production as a percentage of manufacturing, mining and utilities operating at full steam -- rose 0.2 percentage points in June to 78.9 percent, a rate 1.4 percentage points below its 1972-2011 average.

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