Higher exports and the launch of new product lines led to continued growth in the manufacturing sector last month.

The NCB purchasing managers' index (PMI), which is designed to measure the economic health of the manufacturing industry, registered 53.1 in July.

This marked a slower rate of growth than the nine-month high of 54 recorded in June but was still far above the 50 mark on the index that separates growth from contraction.

It was above average for the current period of expansion in the sector, which started almost four years ago.

Eunan King, senior economist at NCB Stockbrokers, said the sector was continuing to grow at a steady if less robust pace than in June. "Export orders were strong and overall orders held up at close to the fastest pace this year. Pricing power appears strong and there was a marked acceleration in input prices," he said.

New export business rose at the sharpest pace for 13 months in July, with the solid growth of new business linked to improved demand from clients in the UK and the euro zone.

Manufacturers recorded a strong increase in output charges in July, reflecting a response by the sector to high inflation in input costs, which increased at the steepest rate since February as the cost of raw materials went up.

Purchasing activity increased solidly in July but at the weakest pace for six months, while employment in the sector was broadly unchanged.