The Irish manufacturing sector continued to rebound strongly in June as more sectors of the economy reopened and restrictions were eased, according to AIB's Purchasing Managers' Index.

The monthly measure of activity in the sector shows that new orders rose at the fastest rate ever, leading to the second-strongest expansion in output to date.

Growth in backlogs, jobs and purchasing were also close to record levels.

Input price inflation accelerated further to the second-highest in the survey history, resulting in a record rate of output price inflation.

Activity is measured on a scale of 1 to 100 with any figure greater than 50 pointing to expansion in a particular sector.

It is derived from indicators for new orders, output, employment, suppliers' delivery times and stocks of purchases.

The PMI of 64.0 in June was little-changed from May's all-time high of 64.1 and signalled another rapid overall improvement in manufacturing business conditions.

In comparison, the next-highest PMI readings in the survey history were April's 60.8 and 59.1 in December 2017.

Since the survey began in 1998 the headline figure has trended at 52.0.

On a quarterly basis, the PMI also set a new record high in the second quarter of 2021, at 62.9, well above the previous record of 58.6 set in the fourth quarter of 1999.

Oliver Mangan, AIB Chief Economist, said that June was the third consecutive month that the index has been above 60.

"Activity in the sector is clearly picking up strongly as economies re-open following the easing of Covid restrictions in Ireland and elsewhere over the second quarter of the year," he said.

"Indeed, there is a global boom underway in manufacturing," he added.

Mr Mangan said the Irish data is in line with strong PMI June readings from the UK, the Eurozone and the US.

The PMI shows that supply chains remain under severe pressure - due to Brexit related customs checks, transport delays in shipping and raw materials shortages.

"These factors, combined with strengthening demand, saw further strong upward pressure on both input and output prices, with rises becoming more broad based," said Mr Mangan.

Meanwhile, the data shows that the 12-month outlook for production remained upbeat, but fell back from May on concerns that the current strong rebound in demand would not be sustained.