U.S. manufacturing production dropped in September as the strike at General Motors hindered output and the ongoing trade tensions, along with a slowdown in global growth, hit the closely watched economic sector.
The Federal Reserve reported Thursday that manufacturing output declined 0.5% last month, marking the second decrease in three months. The Fed attributed the fall in production to the GM strike, which began Sept. 16, and led to a 4.2% drop in production of automobiles and vehicle parts.
The carmaker and the United Auto Workers, however, announced Wednesday they reached a tentative deal to end the strike.
Excluding motor vehicles and parts, factory output decreased 0.1%. Manufacturing fell 0.9% over the last year.
Industrial production, which along with manufacturing includes mining and utilities, fell 0.4% in September.
The manufacturing industry has been dented by the ongoing trade tensions between the United States and China, though President Trump announced Friday that Washington and Beijing reached the first phase of an agreement.
The deal, however, has not yet been finalized. Under the limited agreement, China promised to make between $40 billion and $50 billion in American agricultural purchases, and the U.S. suspended a planned increase in tariffs to 30%, up from 25%, on $250 billion worth of goods from China.
