Irish manufacturing continued to build on a strong start to the year with output and employment growing in February and new orders rising at the sharpest pace in 11 years.

The NCB manufacturing Purchasing Managers' Index, which is designed to measure of the health of the manufacturing industry, rose to 56.7 last month, the fifth consecutive month of rises.

The increase from 55.8 in January signalled a "marked improvement" in operating conditions, the survey said. "Moreover, conditions in the sector strengthened to the greatest extent since January 2000," it said.

Seasonally adjusted output grew to 60.9 from 59 a month earlier. The new orders index rose to 59.2 in February, up from 58.8 in January.

Exports continued to drive the sector, with the index for new export orders rising at the second-fastest rate on record to 61.6.

The rate of job creation in the sector was the sharpest rate since July 2006, as increased workloads pushed businesses to take on more staff.

However, substantial input cost inflation continued for the second month in a row, and was its sharpest in more than 2.5 years. More firms increased their output prices as a result, leading to the inflation at the steepest pace in four years.

NCB economist Brian Devine warned that Ireland must keep its focus on competitiveness under the incoming government.