Japan’s economic recovery faltered in May, as factory output fell and the nation’s jobless rate rose for a third straight month.

Industrial production in the world’s second biggest economy dropped 0.1 percent from the previous month, the government said Tuesday.

The result marks the first drop in three months and just misses Kyodo news agency’s average forecast for a flat reading.

Lower factory output of large passenger cars, semiconductor-related machinery and flat-panel display machinery contributed to the month’s retreat, according to the Ministry of Economy, Trade and Industry.

Meanwhile, the country’s seasonally adjusted jobless rate climbed to 5.2 percent, up from 5.1 percent in April and the highest level since December.

The number of jobless stood at 3.47 million, which is unchanged from the previous year, according to the Ministry of Internal Affairs and Communications.

Those with jobs fell 0.7 percent to 62.95 million.

The results reflect a still-fragile recovery for Japan’s economy, where an export boom has been slow to translate into sustained improvements for workers and families.

Brisk overseas demand also wasn’t enough in May for factories to make up for the fading effects of government stimulus measures.

The drop in industrial production, however, is expected to be temporary. The government predicts the figure to rise 0.4 percent in June and 1 percent in July.

A separate government report showed household spending in May fell a real 0.7 percent from a year earlier as incomes retreated.

Average monthly household income fell a real 2.4 percent from a year earlier to 421,413 yen ($4,714).

A labor ministry report pointed to some bright spots in the jobs picture.

The ratio of job offers to job seekers stood at a seasonally adjusted 0.50 in May, up from 0.48 in April.

That means there were 50 positions available for every 100 job seekers

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Less than three months after its iPad launch, Apple sold its 3 millionth unit of the table device on Monday, the company announced.

“People are loving iPad as it becomes a part of their daily lives,” Apple CEO Steve Jobs said in a prepared statement. “We’re working hard to get this magical product into the hands of even more people around the world.”

The gadget will go in sale in another nine countries next month.

Apple’s iPad is a runaway hit, but its fate wasn’t certain: Plenty of naysaying swirled before the tablet’s April 3 release. But since then, the iPad has raced through sales milestones and shaken up the gadget market. Amazon and Barnes & Noble on Monday slashed prices on their e-readers, the Kindle and Nook, thanks in part to competition from the pricier but fuller-featured iPad.

The rollout hasn’t been glitch-free. AT&T, which is the exclusive provider of 3G services for the iPad, had to patch a security breach earlier this month after a hacker group used AT&T’s website to harvest the e-mail addresses of some iPad buyers.

The iPad’s latest milestone comes two days before Apple’s iPhone 4 hits stores. It too sparked a sales frenzy: Apple sold more than 600,000 units the first day pre-orders were available, and AT&T has suspended sales while it waits for Apple to restock its inventory.

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Mortgage finance giants Fannie Mae and Freddie Mac were ordered by their federal regulator to no longer trade their shares on the New York Stock Exchange, the agency announced Wednesday. Both stocks plummeted on the news.

The Federal Housing Finance Agency (FHFA) and its predecessor agency have overseen the operation of Fannie Mae and Freddie Mac since September 2008, when they were both placed under conservatorship, a form of control similar to what is found in a bankruptcy process.

Since that time, the Treasury Department has poured $83.6 billion into Fannie Mae and $61.3 billion into Freddie Mac to cover losses on the trillions of dollars worth of mortgage-backed securities they own or guarantee.

Billions of additional losses are forecast in coming years, with the Congressional Budget Office estimating that nearly $400 billion in tax dollars will eventually be needed. The government controls the majority of the shares of each firm.

The Obama administration has used the blank check that Congress authorized to bailout the firms in July of 2008 to try and help shore up the still weak U.S. housing market.

Fannie Mae and Freddie Mac remain a key source of funding for banks and other mortgage lenders. Without Fannie Mae and Freddie Mac, lending to home buyers would have completely dried up, home sales and new housing construction would have fallen even more sharply and homes would have lost even more value.

But while the money given to Fannie Mae and Freddie Mac helped put a floor under the U.S. housing market and overall economy, the two firms have continued to hemorrhage money.

The two firms posted combined losses of $93.6 billion in 2009 and another $18.2 billion in the first quarter. The Obama administration had said it would lay out its plan for their future at the start of this year, but has yet to do so.

FHFA said in a statement that the planned delisting is due to the weak stock price for both firms, and not due to any determination about a change in condition at the firms or decisions about their futures.

“A voluntary delisting at this time simply makes sense and fits with the goal of a conservatorship to preserve and conserve assets,” said FHFA’s acting director Edward DeMarco in the statement announcing the move.

Fannie Mae’s shares have hovered near the $1 level that is the minimum required by the NYSE since they were placed into conservatorship, while Freddie Mac’s shares have typically traded at less than $2.

Shares of Fannie Mae and Freddie Mac both plunged about 50% in late-morning trading. Fannie Mae fell to 45 cents, while Freddie Mac was trading at 61 cents. Each firms’ shares are eventually expected to trade publicly on the over-the-counter bulletin board, also known as pink sheet trading.

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