Manufacturing growth rose to an eight month high in March, according to the latest Purchasing Managers' Index (PMI) from Investec, although the pace of expansion remains slower than the strong growth that was seen for much of 2014 and the first half of 2015.

The manufacturing PMI for March shows an uptick in the rate of growth, with the headline PMI improving to 54.9, an eight month high, from February’s 52.9 reading. The rate of growth in new orders quickened in March, while new export orders index picked up slightly from February’s two-year low, with the UK and Asia credited with this improvement.

Headcount also rose, with the rate of job creation accelerating for the third month in a row to the fastest since July 2015. This increased operating capacity contributed to a third successive monthly fall in backlogs of work. On a related note, stocks of finished goods increased for a fourth month in a row.

On the margin side, input costs weakened for a seventh successive month in March, with panellists reporting lower prices for raw materials including food, paper and plastics.