News Summary: US industrial production sinks

Associated Press
In this Aug. 13, 2012 photo, Mercedes SUV bodies are seen during a tour of the SKD packaging facility at BLG Logistics, Inc. in Vance, Ala. Mercedes is building Semi Knocked Down (SKD) car kits for India, Indonesia and Thailand, in a move that will help increase the presence of Mercedes-Benz products in the SUV segment of these markets. 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, according to the Federal Reserve, on Friday, Sept. 14, 2012. (AP Photo/Tuscaloosa News, Dusty Compton)
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In this Aug. 13, 2012 photo, Mercedes SUV bodies are seen during a tour of the SKD packaging facility at BLG Logistics, Inc. in Vance, Ala. Mercedes is building Semi Knocked Down (SKD) car kits for India, Indonesia and Thailand, in a move that will help increase the presence of Mercedes-Benz products in the SUV segment of these markets. 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, according to the Federal Reserve, on Friday, Sept. 14, 2012. (AP Photo/Tuscaloosa News, Dusty Compton)

BIG SPILL: U.S. industrial production fell 1.2 percent in August, the largest amount since March 2009 when the country was in recession. Factories produced fewer cars and other manufactured goods. Hurricane Isaac triggered shutdowns along the Gulf Coast.

THE DETAILS: Manufacturing output, the most important component of industrial production, fell 0.7 percent, led by a 4 percent drop in output at auto plants, the Labor Department reported Friday. Output in mining and utilities also dropped,

THE OUTLOOK: Paul Ashworth, chief U.S. economist at Capital Economics, said that he was concerned that the drop in manufacturing output was "the start of a much weaker trend, as the global economic slowdown begins to have a more marked impact."

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