Mercedes SUV bodies are seen during a tour of the SKD packaging facility at BLG Logistics, Inc. in Vance, Ala. (AP Photo/Tuscaloosa News, Dusty Compton)

WASHINGTON (AP) — 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.

Industrial production dropped 1.2 percent last month compared to July, the Federal Reserve said Friday. It was the biggest setback since a 1.7 percent decline in March 2009 when the country was in recession.

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