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Industrial production slumped 1.2% in August, the largest one-month percentage drop since March 2009, the Federal Reserve reported Friday. Hurricane Isaac’s impact on Gulf Coast region output was responsible for 0.3 percentage points of the drop, the Fed said. Economists polled by MarketWatch had expected a 0.3% drop for August. July’s growth was revised down to 0.5% growth from a previously estimated 0.6% rise. Compared to August 2011, industrial production is up 2.8%. Capacity utilization fell to 78.2% from 79.2% in July.

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