Rising orders and output contributed to an eight straight month of improved performance in the State’s manufacturing sector in October.

The NCB Purchasing Managers' Index rose from 51.8 to 52.1 during the month. Readings above the 50 mark separate expansion from contraction.

"A solid expansion of manufacturing output was recorded in October," NCB said.

"Production rose for the sixth successive month, and the latest increase was the fastest since June."

The measure of exports on the index bounced back to expansion, a reading of 51.8, after a disappointing contraction a month earlier.

The index shows an eight successive monthly rise in employment in the sector as firms responded to increased workloads and said they anticipated further growth of new orders in the coming months.

It said the rate of cost inflation remained substantial in October, with higher energy and raw material costs the main source of pressure. Respondents passed some of the increased costs on to their clients during the month.

"However, strong competition meant that the rate of inflation was only slight, and slower than seen in the previous month," NCB said.

The index suggests the level of spare capacity the sector increased in October, with backlogs of work falling at their sharpest rate since May.