Continued expansions in output and employment alongside muted price and supply pressures may help the sector remain in growth territory as the end of the year approaches.

Hopes for improvements in market demand and new orders, alongside confidence that the Covid-19 pandemic will remain under control, supported optimism in production prospects for the coming year.

Business sentiment continues to improve with 57% of respondents predicting that output will increase over the coming 12 months, against 9% that expected a decrease.

Manufacturers remained optimistic that production will increase in the next 12 months.

The bright spot in the latest PMI survey was employment, which increased at the fastest pace in three and a half years.

Firms remained optimistic that output will rise over the coming year, based on hopes that the pandemic will fade and new orders expand.

A loosening of Covid-19 restrictions led to the restart of production of a number of firms in October. As a result, production growth was recorded for the first time in five months.