Output from the Irish manufacturing sector is at a two year high, according to the latest Purchasing Managers’ Index from Investec.

The index shows that activity in the sector rose for the fifth month in a row during October, with the pace of growth also picking up during the month.

Around 35% of respondents to the survey signalled an increase in new orders, which the attributed to improving economic conditions as well as export growth.

Meanwhile 24% of panellists said they had taken on new staff in the past month, suggesting a marked increase in employment in the sector.

Just 7% of respondents said there was a fall in employment during October.