Employment in the manufacturing sector rose at its fastest pace for 15 years, according to the latest Markit/CIPS UK Manufacturing Purchasing Managers’ Index.

The Index posted a reading of 57.5 in June, down from 58 in May.

The domestic market held up well in June, but growth in new exports fell sharply.

Rob Dobson, senior economist at Markit and author of the UK Manufacturing PMI, says: “June PMI data signal that growth of UK manufacturing production in the second quarter of 2010 was sustained at an average pace close to the 1.2% first quarter gain reported by the official figures.

“The rate at which the sector has been recouping the output lost during the recession has been nothing short of remarkable, with around one third having been recovered by the end of June. The manufacturing labour market appears to be moving more firmly into recovery position, with June seeing jobs added at the fastest pace since 1995.”