Schaumburg, Ill.—Facing increasing competition from other outlets, daily newspaper circulation fell 2.6% in the six-month period ended in March, compared with the year-earlier period, according to data released Monday by the Audit Bureau of Circulations. Sunday circulation fell 3.1%. Gannett Co.’s USA Today remained the top-selling newspaper with a 2.3 million circulation, up nearly 1% from the same period a year earlier. The Wall Street Journal, published by Dow Jones & Co., was second, with its circulation of 1.8 million down about 1%. Circulation for The New York Times was up about 0.5% to 1.1 million, while Tribune Co.’s Chicago Tribune was also up about 1% at 579,000. Several top newspapers reported significant declines in the period, including Tribune Co.’s Los Angeles Times, down 5.5% to 852.000, and The Washington Post, down 3.7% to 725,000.