WASHINGTON — Industrial production grew, albeit at a slower pace, in July, the Federal Reserve reported today.

Total industrial production grew .2% last month, compared with .4% in June and was down .1% from July 2007. July's increase was the second month in a row of growth after four consecutive months of declines in industrial production.

Manufacturing output increased .4%, and that was caused in part by a 3.6% increase in motor vehicle and part production. However, manufacturing was still down 1.1% from last July.

The production of consumer goods was up .3% from June, and down 1.1% from last July. Mining production increased .9% from June, and was 4.2% than in July 2007.

The increased production is one of the few bright spots in the U.S. economic picture, which has been characterized by inflation, above average unemployment and depressed housing values.

Data released Thursday by the European Union indicate that the economic downturn has spread across the Atlantic Ocean. The gross domestic product in the 15 countries that use the euro fell .2% in the second quarter, the first decline since the early 1990s.