Manufacturing activity in India expanded at its strongest pace this year in June, according to the Nikkei India Manufacturing Purchasing Managers’ Index released by IHS Markit on Monday.

The improvement came on the back of sharp gains in output and new orders, a report by IHS Markit said. New overseas orders rose for the eighth consecutive month, the report said. The monthly index rose to 53.1 in June from 51.2 in May.

A reading above 50 shows an expansion, while a lower reading indicates a contraction in manufacturing activity. India’s manufacturing activity has been expanding – that is, stayed above 50 – for 11 months now, peaking in December 2017, when the index was 54.7, the best in five years.

The input costs for manufacturers increased for the 33rd straight month, but the inflation rate was the highest since July 2014. Creation of jobs remained modest, but improved at its strongest rate this year in June, the report said.