Industrial production edged up 0.1 percent, but manufacturing activity dropped amid fears that the economic recovery is stalling.
The Federal Reserve says output at the nation's mines and utilities rose in June, offsetting the loss of factory output. It was the fourth straight monthly increase for overall production.
Utility output rose as hot weather spurred demand for electricity. Mines produced more coal and natural gas.
Yet weak manufacturing could mean a slower rebound. Manufacturing is the biggest component of production. Factories helped lead the economy out of the recession.
Economists expected the recovery to slow this quarter. But some fear the recovery will falter if unemployment remains near 10 percent.