The Empire State index fell to minus 5.7 in June from 19.6 in May, indicating a slower pace of expansion.
May industrial production rose by 0.1% after a 0.9% gain in April, with manufacturing production flat both overall and excluding a 1.2% gain in motor vehicle and parts production.
Utilities output fell by 0.4%, while mining production jumped by 1.3%.
The National Association of Home Builders Housing Market Index fell to 35 in June from 37 in May but was up from a reading of 32 a year ago. NAHB said regulatory burdens continue to restrain building activity.