Markit's purchasing managers' index (PMI) for the sector rose to 56.9, up from 55.1 in July, and against expectations of a fall to 55.
The data assumes significance as it comes a day after the government data showed the country's economic growth slipping to a three-year low of 5.7 per cent in April-June, primarily due to headwinds from the manufacturing sector. "New export orders didn't disappoint either with new business wins from Europe and the U.S. - which all supported the sector's fastest rise in jobs growth since June 2014".
The number comes after United Kingdom manufacturers saw an uptick in new orders within the domestic market while export orders also remained robust during the month.
Britain's manufacturers stepped up production at the fastest pace in seven months in August, taking on more workers to keep up with strong demand from home and overseas.
A Chinese manufacturing index expanded to its highest in six months in August, a private survey showed Friday.
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A news release said overall manufacturing performance reflected decreased output levels and a fractional fall in new orders.
Overnight, the dollar continued its comeback from a two-and-a-half-year slump, buoyed by a pair of economic reports that topped economists' forecasts, raising investor expectations for solid third-quarter economic growth.
"Companies linked gains in new export work to increased business from mainland Europe, the USA, China and Australia".
As production grew, manufacturers increased purchasing activity at a rate that hit a nine-year high.
The latest official data showed retail inflation rose 2.36 percent in July on an annual basis after easing for three consecutive months.
Prime Minister Narendra Modi scrapped high value currency notes previous year in a bid to fight corruption and wipe out black money.