The UK's manufacturing sector saw output rise at its fastest rate in nearly two years during June, a closely-watched survey found today, sources said. The purchasing managers' index of manufacturing activity in the monthly Chartered Institute of Purchasing and Supply survey rose to 55.1 in June from an upwardly revised 53.5 in May -- the previous May figure was 53.2. The June figure was the highest since July 2004. June's PMI surprised the market. Analysts polled by AFX News had predicted a modest decline in the main index to 53.0. A reading above 50 indicates an expansion in activity, while a sub-50 figure indicates contraction. A more detailed look at the UK data shows that the sub-index for new orders rose to 57.7 -- the highest since July 2004 -- from 55.8 in May, even though export orders slipped to 53.1 from 54.5. Elsewhere, the output sub-index surged to 58.8 -- again, the highest since July 2004 -- from 56.4, while the employment indicator rose to 50.8 from 49.4. On the prices front, the survey showed the input prices sub-index rising to 67.5 from 67.1, while output prices spiked to 54.6 from 53.7