Output drops worse-than-expected 1.1%

By By MARTIN CRUTSINGER, AP Economics Writer

WASHINGTON (AP) - Government data show the nation's industrial output plunged in August by nearly four times the amount that had been expected. It's the worst performance since Hurricane Katrina
devastated the Gulf Coast in 2005.

The Federal Reserve reported Monday that industrial output dropped 1.1% last month, far worse than the 0.3% decline that economists had been expecting.

The weakness was led by an 11.9% drop in production of motor vehicles and parts, reflecting the hard times facing the U.S. auto industry.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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