Producers of capital goods such as machinery had a strong month, a good omen for Bank of England officials who think business investment will accelerate next year.
A worker removes paper rolls after filling them with gunpowder mixture to make firecrackers at a factory on the outskirts of Ahmedabad, India September 27, 2017.
New export orders increased for the first time in three months, though marginally.
That suggests a drag on the economy caused by the shock removal of higher-value currency bills from circulation in November 2016 and the roll-out of a goods and services tax (GST) this July has faded.
The seasonally adjusted Nikkei Philippines Manufacturing PMI rose to 54.8 last month from October's 53.7, buoyed by expansions in output and new orders. Economists had expected the index to rise to 54.0.
A reading greater than 50 indicates growth of the sector, while a reading below 50 signals a contraction. Export orders improved slightly after contracting in the previous two months. It was still lower compared to the 56.3 posted a year earlier.
Dodhia said the current phase of expansion led to a pickup in business sentiment as "growth momentum seems likely to continue over the near-term".
The latest rise in new orders was one of the strongest in the survey's history, while growth in new export orders firmed to the sharpest in nearly three years.
On the price front, input cost inflation quickened to the fastest since April, but firms were unable to fully pass on higher cost burdens to price-sensitive clients.
The poll of purchasing managers, however, also indicated that inflationary pressures had intensified.
"Manufacturers have seen supply-chain constraints and rising demand for raw materials overtake exchange rate effects as the primary motivator of price increases", Mr Dobson said.