The seasonally adjusted CIPS/RBS Purchasing Managers' Index posted 53.8 in July, noting growth above the 50.0 mark for the twelfth consecutive month.
Production expanded for the thirteenth consecutive month in July. Growth of output and new orders reflected stronger market conditions and successful sales initiatives.
Output prices now rose each month throughout the past year. The increase in charges reflected efforts to offset a sharp rise in input costs. There were also reports that increased demand encouraged manufacturers to increase their prices.
Manufacturers' costs were driven higher by the current strength of oil and energy prices. The costs of metals, chemicals, paper and packaging also increased.
July data is signaling supply-side constraints are still growing in the UK manufacturing sector.
"Growth of manufacturing output eased from June's near two-year high, but remains buoyant,” said RBS Group Chief Economist Dr Andrew McLaughlin. “Prices charged by manufacturers for their goods rose at the fastest rate for almost two years, although this in part reflects a growing need to pass on higher input costs.”
