U.S. industrial output falls 0.4 percent in June

WASHINGTON (Reuters) - U.S. industrial production fell a smaller-than-expected 0.4 percent in June, according to Federal Reserve data on Wednesday that suggested the pace of recession eased in the second quarter.

Economists polled by Reuters had expected a 0.6 percent decline in industrial production, after a 1.2 percent drop in May, initially reported as a 1.1 percent fall.

For the second quarter as a whole, output fell at an annual rate of 11.6 percent, a more moderate contraction than in the first quarter when production fell at 19.1 percent rate.

The capacity utilization rate, a measure of slack in the economy, fell to 68 percent, the lowest level on records dating back to 1967.

Both manufacturing and mining output fell, while production from utilities increased. (Reporting by Emily Kaiser, Editing by Neil Stempleman)