WASHINGTON — New evidence of a slowing economic rebound emerged Thursday in reports that manufacturing activity is slowing after helping drive the early stages of the recovery.
Factory output fell in June, according to a government report on industrial production. It was the sharpest monthly drop in a year.
And two regional manufacturing indexes sank this month.
Production of automobiles, homebuilding materials and processed food fell in June. The data sent stocks falling.
Federal Reserve officials took note of the weakening recovery when they met last month and lowered their forecast for economic growth, according to minutes released Wednesday.
Manufacturing helped boost the economy last year when the recession ended and has since been one of the strongest sectors in the recovery. June’s decline in output was the first in four months. Overall industrial production ticked up for the month, but that was mainly the result of hot weather that increased demand for electricity from utilities.
“Today’s report supports the view that the manufacturing recovery lost some momentum,” said Peter Newland of Barclays Capital Research.
The decline in factory output came as new data offered a mixed picture of the recovery. Applications for unemployment benefits fell to 429,000, the lowest level since August 2008, the Labor Department said Thursday. But much of that was the result of seasonal factors.
