Manufacturing activity expanded at its quickest pace in eight months in October on strong festive demand and increased output though another surge in the cost of raw materials cast a shadow over the outlook, a private survey showed.

The Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, jumped to 55.9 in October

from September’s 53.7, the highest since February, and remained above the 50-level separating growth from contraction for the fourth straight month.

The reading in October was the highest since February.

However, it failed to arrest job shedding by companies as existing capacities were enough to meet the rising demand.