U.S. service companies, which employ nearly 90 percent of the work force, grew in September at the fastest pace since March, driven by more activity and an increase in new orders.

American International Group says the government may designate the company large enough to pose a risk to the broader financial system. The label would subject the bailed-out insurance giant to greater federal oversight.

A trio of reports Thursday offered a reminder that the U.S. economy is struggling to grow and add jobs.

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.

U.S. service companies grew at a faster pace in August than July and stepped up hiring, further evidence that the economy may be improving.

U.S. companies got more output from their workers this spring than initially thought. Productivity rose at a modest 2.2 percent annual rate in the April-June quarter, largely because employers cut back sharply on hiring.

The U.S. economy grew at a tepid 1.7 percent annual rate in the April-June quarter, suggesting growth will stay weak in the second half of the year.

The number of Americans applying for unemployment benefits edged up slightly last week but remained at a level consistent with modest gains in hiring.