Approximate circuits have been considered for error-tolerant applications that can tolerate some loss of accuracy with improved performance and energy efficiency. Multipliers are key arithmetic circuits in many such applications such as digital signal processing (DSP). In this paper, a novel approximate multiplier with a lower power consumption and a shorter critical path than traditional multipliers is proposed for high-performance DSP applications. This multiplier leverages a newly-designed approximate adder that limits its carry propagation to the nearest neighbors for fast partial product accumulation. Different levels of accuracy can be achieved through a configurable error recovery by using different numbers of most significant bits (MSBs) for error reduction. The approximate multiplier has a low mean error distance, i.e., most of the errors are not significant in magnitude. Compared to the Wallace multiplier, a 16-bit approximate multiplier implemented in a 28nm CMOS process shows a reduction in delay and power of 20% and up to 69%, respectively. It is shown that by utilizing an appropriate error recovery, the proposed approximate multiplier achieves similar processing accuracy as traditional exact multipliers but with significant improvements in power and performance.