The U.S. manufacturing industry expanded in August while employment in the sector grew at its fastest pace since March of last year, an industry report showed on Tuesday.

Financial data firm Markit said its final U.S. Manufacturing Purchasing Managers Index rose to 57.9 in August from 55.8 in July, marking its highest level since April 2010. The preliminary read for the index was 58.0.

A reading above 50 signals expansion in economic activity.

The output subindex rose to 60.7 from 59.7, while the employment component came in at 54.6 from July's final read of 51.2. The final employment reading for August marked its highest level since a matching read in March 2013.

"The US manufacturing sector has gone from strength to strength this summer, with August's improvement in business conditions the sharpest for over four years," said Tim Moore, senior economist at Markit.

"Impressive new business and output gains were matched by a solid rebound in employment growth. The latest survey points to the fastest upturn in payroll numbers for around a year-and-a-half, highlighting that the manufacturing sector continues to have a positive impact on overall labor market conditions."

A read on new orders rose modestly compared to July.