US Industrial Production Fell 1.2 Percent
U.S. industrial production fell in August by the largest amount in more than three years as factories produced fewer cars and other manufactured goods and Hurricane Isaac triggered shutdowns along the Gulf Coast.
The Federal Reserve says industrial production dropped 1.2 percent in August compared to July. It was the biggest setback since a 1.7 percent decline in March 2009 when the country was in recession. Manufacturing output, the most important component of industrial production, fell 0.7 percent, led by a 4 percent drop in output at auto plants.
Manufacturing helped lift the country out of the Great Recession, but it slowed in the spring as consumers cut back on spending, businesses invested less in machinery and demand for U.S. exports was hurt by a global weakness.
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