Spain's manufacturing activity recorded its strongest reading for more than two years in June, according to a closely-watched survey, BBC News reported.

An increase in new orders meant the sector's purchasing managers' index (PMI) rose to 50, up from 48.1 in May. A reading above 50 indicates growth.

Much of the rest of the eurozone also improved, with the PMI reading for the bloc rising to 48.8, a 16-month high. However, Germany's reading fell following a drop in new orders.

June's PMI reading for Spain was the first time in 26 months the index has reached 50. The figures are compiled by research firm Markit, and they were hailed as a promising sign by Markit's senior economist, Andrew Harker.

"The second quarter of 2013 ended on an encouraging note for the Spanish manufacturing sector, with PMI data pointing to a rise in new business," he said.

However, the country's manufacturing sector accounts for just 12% of its total economy, and Harker said growth was coming from exports with little sign of improved domestic demand.

Spain has been among the worst-hit economies by the eurozone crisis. It has not seen significant growth for five years and has high unemployment.

In Germany, a fall in orders pushed its manufacturing PMI reading down to 48.6 in June, from 49.4 in May.

Germany's manufacturing sector accounts for about 20% of its economy and has helped it to become the best-performing economy in the eurozone.

The country had been able to offset weakness in the bloc, where it traditionally sells the biggest percentage of its goods, by sales to faster-growing places, such as China.

But despite making cuts to its prices, weaker economic growth there has been curbing demand and Germany came close to recession this year.