Industrial activity drops in August

WASHINGTON (AP) -- Industrial production fell by 0.3 percent in August, the first decline in eight months, a fresh sign of the faltering economic recovery.

The latest snapshot of industrial action at the nation's factories, mines and utilities reported by the Federal Reserve Tuesday was much weaker than the performance many analysts were expecting.

They were forecasting a rise in industrial production of around 0.1 percent or 0.2 percent.

The 0.3 percent drop was the first decline since December, when the nation's economy was still trying to claw its way out of a recession that began in March 2001.