At the same time, more efficient operations raised total factory output during the 1980's by 37 percent.

Factory output was also badly affected by power supply problems.

But while the services sector is strengthening, factory output fell in the last three months.

As the nation's trade deficit widened to a record $170 billion in 1986, factory output rose only 2.5 percent.

Growth in factory output also rose to 12.8%, from 12.4%.

And July's employment report suggested that factory output may have actually declined.

With unemployment at a 10-year low and factory output near capacity, is inflation just around the corner?

Between 1957 and 1964 factory output nearly doubled while the number of blue collar workers started to decline.

Factory output had witnessed a contraction of 4.7% in the previous month.

If car production rebounds as expected, economists said, factory output should continue to grow very slowly.