Looking ahead, USA and Canada PMI for September and United States construction spending data for August are due to be released in the NY session. There were reports of increased sales to Europe, the USA, China, and Brazil. "The recovery is also looking increasingly broad-based, with rising demand across the region lifting all boats", said Chris Williamson, chief business economist at IHS Markit.
The outlook for the manufacturing sector remained positive overall, with more than 51% of companies expecting production to rise over the next 12 months.
Exports increasing Export business has increased and results are some of the best for six and a half years.
Gill said that a stronger euro was perhaps the reason behind the slippage of new export orders back into contraction territory.
"On the export side, a very competitive pound and healthy global demand should buoy United Kingdom manufacturers competing in foreign markets", he commented.
On the price front, firms faced sharp cost pressures, but were unable to fully pass these on to consumers due to competitive pressures.
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"Firms felt some respite around inflationary pressures, as input cost inflation slowed to the weakest since December 2016, alleviating some doubts that the recent interest rate cut would intensify inflation".
"The weak peso continued to pose a problem for manufacturers", Mr.
"A marked acceleration in the rate of input cost inflation was recorded, linked to higher prices for raw materials, including those sourced from China".
Atul Kariya, manufacturing sector head at accountancy firm MHA MacIntyre Hudson, said: "While it is great to see continued growth in the United Kingdom manufacturing sector, it is likely that these inflationary pressures will go up again, with the potential to cut into profitability and production".
"This will likely exert further upward pressure on prices, dent profitability and potentially disrupt production schedules in coming months", he added. In trend terms, growth is continuing but looks to have decelerated through the September quarter.
"Surging order book growth has encouraged manufacturers to take on extra staff at a rate never previously seen in the 20-year history of the PMI survey". "This, coupled with price inflation (both commodity and import costs) remains a concern".