Data over the past couple of weeks have shown consumer demand held up in the face of the referendum result and Thursday's survey suggests manufacturing, which accounts for 10 percent of Britain's economy, is weathering the initial impact of the vote better than feared.
"Companies reported that work that had been postponed during July had now been restarted, as manufacturers and their clients started to regain a sense of returning to business as usual," Markit economist Rob Dobson said.
"The domestic market showed a marked recovery, especially for consumer products, while the recent depreciation of sterling drove higher inflows of new business," he added.
Sterling fell by more than 10 percent against the dollar and the euro after Britons unexpectedly voted to leave the EU, losses that have not been recouped as markets bet on a long-term hit to British economic performance and that the Bank of England will lower interest rates again later this year.
Economists will be keen to see if the rebound in manufacturing PMI is also reflected in figures due to be published on Monday for the far larger, more domestically focused services sector.
The weak PMI surveys of July suggested the economy had begun to contract at the fastest rate since the 2008-09 financial crisis and were a big factor behind the BoE's decision on Aug. 4 to cut rates to a record low and restart bond purchases.
August's manufacturing PMI showed export orders flowed in at their fastest rate since June 2014, though overall order growth was below June's rapid pace. Factories reported that they increased output by the highest amount since January.
A separate survey published last week by the Confederation of British Industry showed export orders rising at the fastest rate in two years in the first part of August, but more subdued domestic demand than the PMI.