The UK manufacturing sector was given a boost last night by a survey showing the rate of growth increasing for the first time since July.

Improvements in new business and employment were the main drivers of the rise, according to the study by the Chartered Institute of Purchasing and Supply (CIPS).

The institute's activity barometer increased to 53 last month, up from an upwardly revised 52.3 for the previous month - any figure above 50 indicates growth.

Although the pace of expansion is still well below that seen earlier this year, it offers more hope than official figures. Data from the Office for National Statistics recently showed a significant fall in factory output as soaring oil prices forced a surge in costs.

Roy Ayliffe, director of professional practice at CIPS, said October was a month of robust growth for manufacturing.

But he said: "Purchasing managers once again faced soaring costs for raw materials as input price inflation reached its highest level in nine-and-a-half-years."

The rise in input price inflation to 73.5 from 68.1 reflected high metal, oil, plastic and chemical prices. In the case of steel and aluminium, the rise was fuelled by a combination of strong demand and higher energy prices.

Economist John Butler at HSBC said he thought the survey suggested a better fourth quarter for manufacturers, although it was far more upbeat than official figures.

He said: "Overall, this survey suggests the gloom surrounding the industrial sector may have been overdone in the summer and is pointing to a good start to the fourth quarter."

He did not believe the news would affect the Bank of England's interest rate decision due this week.